Hold the pencil with the end you want to sharpen facing away from your body. Pastel pencils do not have erasers, so either end can be sharpened.
Whittle the wood away from the tip of the pencil using a razor blade. Lay the side of the blade flat against the pencil about an inch from the tip, then draw the razor toward the pencil end. Always draw the razor away from your body.
Hone the pencil tip to a rough point with the blade. If your pencil has been sharpened before, this should take only a few strokes. Fresh pencils will take more strokes and a longer time to hone.
Put the blade away. Lay the medium-grit sandpaper on a flat work surface and rub the side of the pencil tip on it. This will further refine the point. Rub until the wood is smooth and the pencil has come to a point.
Switch to the fine sandpaper and gently rub the side of the sharpened pencil tip on it. This will smooth and sharpen the tip. The more you rub the tip with the sandpaper, the finer your line will be when you use the pastels.