Pakistan’s Refineries Hit by a Rare Problem as Petrol Prices Fall

Pakistan's refineries are grappling with a rare issue as the international price of petrol has fallen below the cost of crude oil, resulting in negative refinery margins for the first time in recent history. According to Topline Research, petrol refining margins fell to negative $1 per barrel on a seven-day rolling average basis as of November 6, with international petrol prices at $105.90 per barrel compared to Dubai crude oil at $106.90 per barrel.

The trend became apparent in international price data compiled by OGRA and Topline Research, with petrol and Dubai crude prices moving closely during October before both declined sharply by the end of the month. By November 5, petrol prices had fallen below crude oil prices, pushing refining margins into negative territory. This development comes as domestic refineries are already facing pressure from the recently imposed Rs. 49 per liter levy on petrol, which is expected to further squeeze refinery profitability.

Brief written by urgent.news from ProPakistani's own syndicated text. Machine-written — may contain errors; check the original before relying on it.