ISLAMABAD: Pakistan’s oil refining sector has agreed to provide fuel to the armed forces and Haj flight operations at heavily subsidised “pre-Iran war” rates until June 30, 2026, in a major relief measure aimed at supporting national security operations and protecting pilgrims from rising travel costs amid global oil market volatility.
The agreement was finalised during a meeting of the National Clean Management Committee (NCMC), chaired by Federal Minister for Petroleum Ali Pervaiz Malik.
Under the arrangement, the Pakistan Army and Pakistan Air Force will receive superior kerosene oil (SKO) and JP-8 jet fuel at prices prevailing before the outbreak of the Iran conflict, insulating military fuel costs from the sharp increase in international petroleum prices.
The move comes at a time when Pakistan’s security forces are maintaining heightened operational readiness along the western border and continuing counterterrorism operations against militant hideouts near Afghanistan.
The agreement also extends support to Haj operations, with refineries agreeing to supply JP-1 aviation fuel for Haj flights at rates fixed on March 1, 2026. The measure is intended to help prevent a substantial increase in airfares for Pakistani pilgrims during the current Haj season.
Officials from the Petroleum Division said the subsidy-like arrangement is expected to cost the refining sector between Rs6 billion and Rs7 billion per month, with the total financial impact projected to reach Rs10 billion to Rs12 billion by the end of June.
Industry representatives described the move as a contribution made in the broader national interest despite mounting financial pressures on the refining sector.
Adil Khattak, Managing Director of Attock Refinery Limited (ARL), said the refineries agreed to supply fuel at discounted pre-war prices at the request of the petroleum minister and in support of national priorities.
He noted that the refining industry continues to face major financial challenges, including delays in refinery upgradation projects, which he said have cost the country an estimated $1 billion to $1.5 billion annually over the past three years.
The official further revealed that refineries had already absorbed losses of approximately Rs24 billion in April under a separate government-backed diesel pricing mechanism that capped diesel crack spreads at $41.5 per barrel.
Story by Khalid Mustafa
