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Pakistan’s fuel price policy: Is refinery investment at risk?

Pakistan’s new petrol pricing policy offers consumer relief but raises concerns over refinery profits, investment and future energy security

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Muazam Ali Tahir

Producer, Business Desk

Muazam Ali Tahir is a business journalist and producer at Nukta, focused on Pakistan's business and economy trends. Prior to joining Nukta, he was a trainee at Dawn Newspaper and a freelance producer at Raftar. He was also previously a business journalist for Profit Magazine.

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Pakistan’s refineries reported a sharp jump in profits. So why are they worried about what comes next?

The government’s new petrol pricing mechanism is giving consumers relief of PKR 14.71 per litre, but it has also changed how much refineries earn from petrol.

The industry says the policy could undermine investment plans tied to USD 5–6 billion in refinery upgrades.

Those upgrades are expected to increase petrol and diesel production while reducing furnace oil output. But when fuel pricing rules change, what happens to investor confidence?

Watch the full explainer to understand what the new policy means for consumers, refineries and Pakistan’s energy security.

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