Fuel prices in Pakistan – the real story:
The OGRA formula NEVER changes — whether prices rise or fall. It starts with Import Parity Price (average Platts Arab Gulf rates), then adds taxes/levies (PDL etc.), OMC + dealer margins, IFEM, etc. No secret rules for hikes.
OMCs are REQUIRED by OGRA to keep ~20–28 days of mandatory stock (recently higher due to regional tensions). They sell every day while buying fresh stock at current international prices to maintain the level. It's a continuous cycle, not frozen old inventory.
When prices go up sharply: They get a short-term inventory gain on cheaper old stock sold at new higher prices — but it vanishes quickly because they immediately replace it with more expensive new stock.
When prices go down: They sell expensive old stock at the new lower prices → actual losses (OMCs absorb from their pocket, no automatic govt bailout for normal drops).
Bottom line: No one makes guaranteed profit from ups and downs. The system balances risks both ways — gains in rises, losses in falls. Weekly revisions (since March 2026) just make swings smaller & faster to avoid big build-ups.
This is how regulated pricing works for stability & supply security. Don't believe rumors of 'easy inventory profits' — industry reports show losses happen often too. Stay informed!
#FuelPrices #PakistanOil
Former Governor of Balochistan, Nawab Zulfiqar Khan Magsi's interview is probably my favourite interview from Pakistan. This also holds true for India.
An alternate use of this money could have been giving a 25% to 50% tax relief to all salaried people making less than Rs 300,000 per month. Or an 8% to 10% relief to all salaried people. But instead the govt chose to give Rs 25 crore to all legislators. We need a govt with better priorities.