Petroleum dealers in Pakistan have called for an immediate forensic audit of the country’s oil refineries, arguing that a thorough financial review could create room to slash fuel prices by Rs40 to Rs50 per litre, Dawn reported on November 4, 2026.
Surging Profit Margins Spark Calls for Scrutiny
The demand follows a dramatic spike in sector profitability during the first quarter of the fiscal year. Topline Securities reported that the oil refinery sector posted profits of Rs32.2 billion in 1QFY27, marking a colossal leap from just Rs1.6 billion in 1QFY26 and Rs1.1 billion in 4QFY26. The report linked the windfall to elevated Gross Refining Margins driven by the US-Iran war.
Pakistan Petroleum Dealers Association (PPDA) Chairman Malik Khuda Bakhsh and senior association leaders pointed out that recent remarks by the petroleum minister confirmed their long-held suspicions. According to the PPDA, the minister acknowledged that refineries amassed profits in a mere three months equal to their typical earnings for an entire year.
Dealers Demand Broader Policymaking Role
The proposed audit should examine crude oil procurement costs, production expenses, financial records, and pricing mechanisms. Dealers emphasized that the resulting financial relief should not be framed as an unfair burden on refineries, especially while ordinary households buckle under heavy inflation, steep utility tariffs, and mounting transportation expenses.
The PPDA is also pushing for formal representation in government policy discussions. The association argues that relying solely on refineries for sector decisions is insufficient, and that including petroleum dealers will bring essential ground-level market experience to future sector policies.
