Pakistan’s oil industry has strongly criticized the government’s recent decision to reduce petroleum product prices by 18–20%, describing it as a unilateral move that bypasses the established pricing formula and undermines the financial stability of the sector.
Industry stakeholders estimate that the price reduction has already resulted in losses of approximately Rs. 105 billion for refineries and oil marketing companies across the country. Major players such as Pakistan State Oil (PSO) and Pak-Arab Refinery Limited (PARCO) are expected to bear significant financial pressure, while several other companies in the sector are also reporting substantial setbacks due to shrinking margins.
The Oil Companies Advisory Council (OCAC) has expressed serious concern over the situation, warning that frequent and abrupt policy changes are eroding investor confidence in the petroleum industry. The council further cautioned that continued instability in pricing mechanisms could expose companies to rising financial risks, including the possibility of insolvency for weaker operators if the current trend persists.
Industry representatives have urged the government to immediately engage in structured consultations with stakeholders to ensure a stable, transparent, and predictable pricing framework that can safeguard both consumer interests and the long-term sustainability of the energy sector.
