Pakistan refineries’ losses reached about Rs24 billion in April 2026 as the sector faced pressure from a capped diesel pricing formula.
Industry officials said the government’s decision to lock the diesel crack spread at $41.5 per barrel understated actual refining economics.
Refinery representatives said the calculation excluded delivered crude costs, including freight, premiums and war risk insurance linked to regional tensions.
They also said a 5% customs duty on crude imports was worsening margins, with refineries recovering only 2.5% to 3% of the burden through the diesel deemed duty mechanism.
An industry source told The News that the quoted $ 41.5-per-barrel crack was “not real” and that effective margins were far lower after delivered crude costs.
Market data cited in the report showed the crack spread was closer to $60 per barrel as of April 30, based on Dubai crude near $110 per barrel and diesel around $160 per barrel.
Read: OMAP Warns Fuel Supply Disruption Over Refinery Allocations
Weekly refinery losses stood at Rs7.1 billion from April 4–10, Rs8.5 billion from April 11–17, Rs6.6 billion from April 18–24 and Rs2 billion from April 25–30.
Pakistan Refinery Limited earned about Rs10 billion in March, but profit dropped to about Rs0.5 billion in April, with losses expected in May.
Refineries said petrol margins remained near $9 per barrel, while furnace oil margins were about minus $40 per barrel.
Federal Minister for Petroleum and Natural Resources Ali Pervaiz Malik said the new pricing formula had the backing of the International Monetary Fund and that the government was working to support refinery upgrades and offset losses from the FY2025 sales tax exemption.
