Massive petrol & diesel price drop expected in Pakistan — Here’s why!

Oil marketing companies (OMCs) have raised objections over the proposed ‘take and pay’ clause in sales and purchase agreements (SPAs) with local refineries, warning that the move would place an unfair financial burden on them.

The development comes as petroleum product prices are expected to see a notable reduction later this week.

Massive drop in petrol and diesel prices?

According to the Oil Marketing Association of Pakistan (OMAP), petrol prices could fall by Rs12 per litre, while high-speed diesel (HSD) prices may see a cut of Rs8 per litre. The decline is attributed to international market trends and inventory adjustments.

In a letter addressed to the chairman of the Oil and Gas Regulatory Authority (OGRA), OMAP chairman Tariq Wazir Ali strongly opposed the new ‘take and pay’ clause, stating that it unfairly shields refineries from market fluctuations while placing the entire financial risk on OMCs.