Pakistan unveils new refining policy for petrol and diesel

Published On 29 Jul, 2026
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The policy is expected to pave the way for around $6 billion in investment in the country’s refining sector. It was developed in consultation with relevant stakeholders, including the Special Investment Facilitation Council (SIFC).

The new framework is designed to modernise ageing refineries, increase the production of petrol and high-speed diesel, significantly reduce furnace oil output, and improve overall fuel quality.

The government believes the policy will strengthen Pakistan’s energy security. To support the production of Euro 5-compliant fuel, refineries will be offered a seven-year incentive package.

Refinery operators will also be required to sign implementation agreements with the Oil and Gas Regulatory Authority (OGRA) within 90 days of the policy’s approval.

The policy includes measures to attract international investment into Pakistan’s refining industry. It also provides protection for refineries against future changes to taxation, environmental legislation and foreign exchange regulations.