Pakistan’s oil industry has strongly opposed the government’s proposed changes to the petroleum pricing formula, warning that the move could disrupt supplies and push the country toward a fuel crisis at a highly sensitive time.
The controversy emerged after a committee formed by Prime Minister Shehbaz Sharif began reviewing the existing oil pricing formula.
Sources said the committee proposed delinking the inventory cost-based pricing system from international market rates, even though domestic oil prices are currently revised weekly in line with global benchmarks.
Industry stakeholders argued that the proposal ignores the commercial realities of the petroleum business. Oil marketing companies, they said, cannot continue importing products at elevated international prices while being forced to sell them domestically at artificially suppressed rates. They warned that such a mismatch would discourage imports, weaken supply planning, and erode confidence across the sector.
Concerns were also raised over frequent policy shifts, saying predictability is essential for procurement cycles, inventory management, and financial planning. Officials noted that unresolved structural issues, including input tax recovery and compensation for exchange losses, are already straining oil companies and refineries.
Concerns are also rising over energy availability beyond oil, with the second LNG terminal set to shut down from April 2 just as summer electricity demand begins to rise.
