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[SITUATION] · [ACTIVE]

3 clusters · 13 sources · 26 days · First seen 28 days ago · Last updated 3 days ago

Pakistan and Nigeria fuel policy adjustments

Entities: Pakistan · Shehbaz Sharif · Oil and Gas Regulatory Authority · Cabinet Committee on Energy · Muhammad Aurangzeb

Overview

In early July 2024 Nigeria and Pakistan were reported to be adjusting fuel policies amid volatile oil prices. By late July 2024 Pakistan’s cabinet approved amendments to the Pakistan Oil Refining Policy 2023, targeting Euro‑4/Euro‑5 fuel production, domestic refinery upgrades, a US$5‑6 billion investment plan, 10 % tariff protection for motor spirit and high‑speed diesel, escrow financing and sales‑tax exemptions. Prime Minister Shehbaz Sharif also ordered an expansion of strategic petroleum reserves and announced a modest Rs 0.75‑per‑litre petrol cut while raising diesel prices, alongside roadshows in Gulf states to attract investors.

Two years later, on 28 July 2026 the Cabinet Committee on Energy reaffirmed those policy amendments and again directed the expansion of strategic reserves as a pillar of energy‑security strategy. The following day the government instituted a bi‑weekly price revision: petrol was reduced by Rs 0.75 to Rs 336.06 per litre and high‑speed diesel was raised by Rs 2.24 to Rs 390.62. The petroleum minister noted that the IMF would not approve a cut to the petroleum levy, but pledged to restore a targeted subsidy for low‑income households if international oil prices climb. Concurrently, a phased deregulation of the petroleum market was approved, aiming to lower the crack spread for diesel, reduce depot points, launch a public price dashboard and promote digitalisation of the supply chain. No further public actions from Nigeria have been reported.

Claims

What the coverage asserts, and how well corroborated each claim is across sources.

[● 6 SOURCES] Amendments to the Pakistan Oil Refining Policy 2023 were approved by the Cabinet Committee on Energy. (approved)
[● 5 SOURCES] The policy aims to upgrade refineries to produce Euro-4 and Euro-5 fuel standards. (objective)
[● 5 SOURCES] The reforms target reduction of dependence on imported petroleum products. (objective)
[● 4 SOURCES] The government will hold roadshows in Qatar, Saudi Arabia and other Gulf countries to promote the amended brownfield refinery policy. (plan)
[● 4 SOURCES] Prime Minister Shehbaz Sharif warned that negligence or delays in implementing the policy would not be tolerated. (warning)
[● 3 SOURCES] Prime Minister Shehbaz Sharif ordered expansion of Pakistan's strategic petroleum reserves. (order)
[○ 1 SOURCE] The proposed changes include reducing deemed duty protection for refinery upgrades from 7.5% to 5%. (policy proposal)
[○ 1 SOURCE] The Finance Act 2024 shifted petroleum products from a zero‑rated to an exempt sales‑tax regime, increasing unrecoverable costs for refineries. (tax law change)

Timeline

3 days ago

[BUSINESS] 8 sources
Pakistan to Adjust Fuel Prices as Inflation Eases, IMF Blocks Levy Cut
Pakistan's inflation may ease to 9% in July as fuel prices adjust; petrol cuts Rs0.75/litre, diesel rises Rs2.24/litre. The government will reinstate a targeted subsidy if oil prices rise, while the IMF doubts.
4 days ago

[POLITICS] 9 sources
Pakistan Approves Oil Refining Policy Amendments and Expands Strategic Reserves
Pakistan’s Cabinet approved oil‑refining policy amendments to boost Euro‑4/5 fuel production, attract $5‑6 bn in upgrades, expand strategic reserves and launch Gulf roadshows.
28 days ago

[BUSINESS] 3 sources
Nigeria and Pakistan adjust fuel policies amid changing oil prices
Nigeria sees high pump prices despite falling crude, while Pakistan cuts petrol and diesel rates and launches a fuel‑price stabilisation fund.

Sources

arabnews.pk · arynews.tv · bolnews.com · dailytimes.com.pk · economy.pk · en.dailypakistan.com.pk · flare.pk · islamabadpost.com.pk · khybernews.tv · mycolumbuspower.com · techjuice.pk · thefrontierpost.com · theneutral.pk

This summary has been updated 4 times: see revision history