Pakistan, June 26 -- A major dispute has emerged between the government and Pakistan's oil industry over the recent reduction in fuel prices. Oil companies claim the price cut was based on incorrect calculations by the regulator. The disagreement could affect fuel pricing, industry finances, and future petroleum reviews.

Oil Marketing Companies and refineries have accused the Oil and Gas Regulatory Authority of miscalculating global premiums and Platts benchmark averages. According to the industry, the pricing formula excluded key cost components during the latest fortnightly review. As a result, they claim fuel prices were reduced beyond justified levels.

Industry stakeholders alleged that high-speed diesel prices were lowered by nearl...