Pakistan’s oil marketing companies (OMCs) and refineries are facing a major crisis. A recent big cut in fuel prices has wiped out more than a year’s profits in just one day. Industry leaders say this sudden change caused huge losses of about Rs104 billion (around $367 million).
On June 19, 2026, the government reduced petrol prices by Rs74 per litre and diesel by Rs67 per litre. This followed falling global oil prices after an easing of tensions in the Middle East. Companies were left with large stocks of fuel bought at higher prices during the conflict. They now have to sell it cheaper, destroying their working capital and liquidity.
The Oil Companies Advisory Council (OCAC) told the government that pricing rules changed too often, seven times for diesel and four times for petrol in three months. This created huge uncertainty. Foreign investors, like those behind Wafi Energy Pakistan, are shocked and may pull out.
Despite stable demand, OMCs struggle with international oil trends, currency issues, and government rules. An emergency meeting with Petroleum Minister Ali Pervaiz Malik assured some stability in the weekly pricing system, but companies want full deregulation and action against smuggling.
Without steady policies, the sector may see weaker companies close and less new investment.
