KARACHI: Petroleum dealers have demanded an immediate, transparent and comprehensive forensic audit of Pakistan’s oil refineries, arguing that an examination of their financial records could create room for a reduction of Rs40-50 per litre in petroleum prices and provide much-needed relief to consumers.
Thank you for reading this post, don't forget to subscribe!The demand comes amid a sharp surge in refinery sector profitability. According to Topline Securities, the sector recorded profits of Rs32.2 billion in the first quarter of FY27, compared with Rs1.6 billion in the corresponding period last year and Rs1.1 billion in the preceding quarter. The significant increase was primarily driven by higher Gross Refining Margins (GRMs) amid the US-Iran war.
Pakistan Petroleum Dealers Association (PPDA) Chairman Malik Khuda Bakhsh and other senior representatives said the petroleum minister’s recent remarks about extraordinary refinery profits had reinforced concerns previously raised by the association.
In a statement, PPDA representatives said they had repeatedly highlighted that certain refineries were generating unusually high profits, the financial impact of which was ultimately being borne by ordinary consumers.
They noted that the petroleum minister had recently disclosed that refineries had earned, within just three months, profits equivalent to what they would normally generate over an entire year. The association described the development as a serious concern warranting an independent and impartial investigation.
The PPDA called on the government to order a comprehensive forensic audit of all oil refineries, covering their financial records, expenditures, crude oil procurement costs, production expenses, pricing mechanisms and revenues generated from petroleum product sales.
According to the association, the audit would establish the reasons behind the extraordinary profits and determine the extent to which the resulting financial burden had been directly or indirectly passed on to consumers.
The dealers also stressed that any relief provided to petroleum consumers should not be portrayed as an additional financial burden on refineries.
They pointed out that consumers were already struggling with persistent inflation, high electricity and gas tariffs, rising transportation costs and increasing prices of essential commodities. A meaningful reduction in petroleum prices, they said, could offer considerable relief to households and businesses.
The PPDA further argued that consulting only refineries and other relevant institutions while formulating key petroleum sector policies was insufficient. Petroleum dealers, who have direct experience of market conditions and consumer behaviour, should also be included in the decision-making process.
The association urged the government to make petroleum dealers an integral part of petroleum sector policymaking, emphasising that their practical experience, recommendations and understanding of market realities could contribute to more balanced, effective and consumer-oriented policies.
