Pakistan refiners warn $6 bln upgrades at risk due to fuel price deregulation plan

A worker pumps petrol in a car at a fuel station in Rawalpindi on July 16, 2023. (AFP/File)
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Updated 23 April 2024
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Pakistan refiners warn $6 bln upgrades at risk due to fuel price deregulation plan

  • Regulatory authority proposes oil marketers, refineries be allowed to set prices instead of government 
  • Refiners demand they be consulted before the implementation of “irrational recommendations”

KARACHI: Pakistan’s plans to deregulate fuel prices could lead refiners to halt planned upgrades worth up to $6 billion and force some refineries to close, some of the country’s top refiners said in a letter to the country’s oil regulator.

Looking to drive down prices for consumers, the South Asian nation’s Oil & Gas Regulatory Authority (OGRA) has proposed that oil marketers and refineries be allowed to set fuel prices, instead of the government setting prices.

As part of the change, OGRA proposed scrapping or reviewing a rule that requires fuel buyers to purchase supply from local refineries, another issue the refiners said could result in “disastrous consequences.”

The refiners — state-run Pakistan Refinery and private domestic refiners Pak Arab Refinery, Attock Refinery, Cinergyco, and National Refinery — said they were already struggling to operate near full capacity and asked that they be consulted before the implementation of “irrational recommendations.”

“The refining sector requires OGRA support through pragmatic and supportive measures, rather than suggesting ways that if implemented would result in their permanent closure,” the refiners told OGRA on Monday in a letter, which was reviewed by Reuters.

The deregulation was aimed at boosting competition and protecting the public interest, OGRA told Reuters in a statement on Tuesday, but did not respond to specific questions on the letter from the refiners. However, it said in an April 17 presentation reviewed by Reuters the potential impact of deregulation on refinery upgrades had to be assessed carefully, calling it a challenge.

“The refineries upgradation will bring in investment of $5 — 6 billion and not only result in cleaner environment friendly fuels but also result in savings of precious foreign exchange of the country,” the refiners wrote in the letter to OGRA.


No casualties as blast derails Jaffar Express train in Pakistan’s south

Updated 26 January 2026
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No casualties as blast derails Jaffar Express train in Pakistan’s south

  • Passengers were stranded and railway staffers were clearing the track after blast, official says
  • In March 2025, separatist militants hijacked the same train with hundreds of passengers aboard

QUETTA: A blast hit Jaffar Express and derailed four carriages of the passenger train in Pakistan’s southern Sindh province on Monday, officials said, with no casualties reported.

The blast occurred at the Abad railway station when the Peshawar-bound train was on its way to Sindh’s Sukkur city from Quetta, according to Pakistan Railways’ Quetta Division controller Muhammad Kashif.

No group immediately claimed responsibility for the bomb attack, but passenger trains have often been targeted by Baloch separatist outfits in the restive Balochistan province that borders Sindh.

“Four bogies of the train were derailed due to the intensity of the explosion,” Kashif told Arab News. “No casualty was reported in the latest attack on passenger train.”

The Jaffar Express stands derailed near Abad Railway Station in Jacobabad following a blast on January 26, 2026. (AN Photo/Saadullah Akhtar)

Another railway employee, who was aboard the train and requested anonymity, said the train was heading toward Sukkur from Jacobabad when they heard the powerful explosion, which derailed power van among four bogies.

“A small piece of the railway track has been destroyed,” he said, adding that passengers were now standing outside the train and railway staffers were busy clearing the track.

In March last year, fighters belonging to the Balochistan Liberation Army (BLA) separatist group had stormed Jaffar Express with hundreds of passengers on board and took them hostage. The military had rescued them after an hours-long operation that left 33 militants, 23 soldiers, three railway staff and five passengers dead.

The passenger train, which runs between Balochistan’s provincial capital of Quetta and Peshawar in the country’s northwest, had been targeted in at least four bomb attacks last year since the March hijacking, according to an Arab News tally.

The Jaffar Express stands derailed near Abad Railway Station in Jacobabad following a blast on January 26, 2026. (AN Photo/Saadullah Akhtar)

Pakistan Railways says it has beefed up security arrangements for passenger trains in the province and increased the number of paramilitary troops on Jaffar Express since the hijacking in March, but militants have continued to target them in the restive region.

Balochistan, Pakistan’s southwestern province that borders Iran and Afghanistan, is the site of a decades-long insurgency waged by Baloch separatist groups who often attack security forces and foreigners, and kidnap government officials.

The separatists accuse the central government of stealing the region’s resources to fund development elsewhere in the country. The Pakistani government denies the allegations and says it is working for the uplift of local communities in Balochistan.