{
  "id": 6395185,
  "title": "Oil Sector Rejects Plan to Lower Diesel Price",
  "url": "https://urgent.news/2026/09/09/oil-sector-rejects-plan-to-lower-diesel-price",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-09-09T06:12:32.000Z",
  "source": {
    "name": "ProPakistani",
    "slug": "propakistani",
    "url": "https://propakistani.pk/2026/09/09/oil-sector-rejects-plan-to-lower-diesel-price/"
  },
  "original_language": "en",
  "account": "The Oil Companies Advisory Council (OCAC) has cautioned that a suggested adjustment to the high-speed diesel (HSD) pricing formula could exacerbate refinery challenges and jeopardize upcoming sector investments. In a letter to Energy Minister Ali Pervaiz Malik on September 8, the OCAC revealed the government is contemplating reducing the HSD crack ceiling from US$41.89 per barrel to US$30 per barrel. This could lower the HSD price by around Rs. 18 to Rs. 20 per liter. The council noted this change would follow several adjustments to the HSD pricing system in recent times, including the latest modification on August 20, 2026. They appealed for stable and foreseeable fuel pricing. Furthermore, the OCAC emphasized that the current HSD pricing formula does not account for present market premiums. While Aramco's premium for October stands at minus US$2 per barrel, cargoes are being offered and secured at premiums of US$15 to US$20 per barrel. The council cautioned that a sudden drop in HSD prices could complicate refineries' ability to secure October cargoes at these premiums, potentially making high premium cargoes unprofitable and compelling refineries to decrease output instead of boosting production before seasonal demand. The council stressed that the refining sector has consistently backed the government during tough times but cannot continuously endure the financial consequences of policy changes. They also stated that refineries are set to invest between US$5 billion and US$6 billion in upgrading projects under the Brownfield Refining Policy, making policy stability and pricing consistency crucial for these ventures. The OCAC also pointed out the overdue rise in oil marketing company margins. They pointed out that OMC margins were last revised in September 2023 despite persistent inflation, escalating operating and compliance costs, and increased regulatory demands. The council once more requested the immediate notification and execution of the pending Rs. 1.22 per liter increase in OMC margins. They urged the government to maintain consistency and continuity in the fuel pricing formula for the benefit of the downstream oil industry.",
  "summary": "The Oil Companies Advisory Council (OCAC) has warned that another proposed change to the high-speed diesel (HSD) pricing formula could … Read More The post Oil Sector Rejects Plan to Lower Diesel Price appeared first on ProPakistani .",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}