Highest ever Imports of HSD of 548,790 Tons was recorded in May, 2016     |     900,101 Tons of HSD Sales in May 2016 was the highest ever     |     Highest ever imports of Motor Gasoline of 549,968 Tons were recorded in September 2017     |     684,440 Tons of PMG Sales in August, 2017 was the highest ever
Petroleum Product Prices
  • Effective April 16, 2006 the prices of petroleum products were announced by Oil & Gas Regulatory Authority
  • Effective June 1, 2011 Refineries and OMCs have to notify Ex Refinery and Ex Depot prices of MS, HOBC, HSD and LDO
  • Effective November 1, 2016 price of HOBC has been deregulated and variable prices are applicable

Pricing Formula



Consumer prices in Pakistan are made up of the following elements:

  • Ex-refinery price based on concept of "Import Parity"
  • Government levies (excise duty and Petroleum Development Levy)
  • Inland freight
  • Distributor and dealer margins
  • Sales tax

The Ministry of Petroleum has approved the pricing mechanism. Each of the above elements have been explained below:



The ex-refinery price of a product, which is paid to local refineries, equates to the landed cost of the product. In other words it relates to the import parity price of the product if the same were to be imported. The base price relates to the relevant product's FOB price averaged for the fortnight as quoted in the Arab Gulf region to which are added other elements like freight, duties, L/c and bank charges, custom duty, wharfage etc to arrive at the refinery price.



Government levies are the prerogative of the Government and are fixed in accordance with the needs of the Government. Petroleum products are an important source of any Government's revenue and Pakistan is no exception.



Inland freight is used to equate the prices of the products all across Pakistan. In order to do this:

  • 29 core depot locations have been identified and prices are kept constant over these locations.
  • The product wise cost of product transportation from refineries or imports to these 29 locations is allocated to the respective product and is called primary transport cost.
  • Primary cost represents actual cost and does not include any profit element for the marketing companies.
  • The cost of transporting product from these aforementioned core 29 depot locations to the respective retail outlet is called secondary transport cost and varies in accordance with the distance of the retail outlet from the nearest depot. This cost is over and above the maximum ex-depot sale price determined by OCAC for the 29 core depot locations.



The Government fixes the distributor and dealer margins, which represent the profit element for the oil marketing company and their dealers. These margins are represented as a percentage of the Maximum Ex-Depot Sale Price. From July 2002, these have been fixed at:
  • 3.5% for Oil Marketing Companies and
  • 4% for dealers.



Sales tax is the last element in the consumer pricing and is calculated at 15% of the price before sales tax.

A sample calculation sheet for working out the ex-refinery prices of various products is shown as an Annexure.

To see the price structure for the year, refer to Price Buildup.

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