ISLAMABAD: The government is set to provide major relief to consumers as diesel prices are expected to fall by more than Rs30 per litre, Federal Petroleum Minister Ali Pervaiz Malik said on Wednesday.
Speaking at a press conference alongside Information Minister Attaullah Tarar, Malik said local oil refineries had agreed to reduce the price of diesel by around Rs30 to Rs32 per litre following the government’s request.
“Oil refineries, responding to the government’s request, have decided to provide relief of Rs30-32 per litre,” the minister said, adding that the Oil and Gas Regulatory Authority (OGRA) would announce its calculations shortly.
The announcement came hours after Prime Minister Shehbaz Sharif directed the petroleum minister to travel to Karachi and hold talks with local oil refineries to secure maximum possible relief for consumers.
According to the Prime Minister’s Office, Shehbaz directed Malik to conclude negotiations with the refineries at the earliest. The prime minister noted that a significant portion of the country’s diesel consumption was met through domestic refineries and stressed the need to reduce prices and pass the benefit on to consumers.
Diesel Price Reduction to Ease Inflationary Pressure
Diesel is widely used by the transport and agricultural sectors, including trucks, buses, trains, tractors, tube wells and threshers. As a result, higher diesel prices have a direct impact on transportation costs and contribute to increases in the prices of vegetables, food items and other essential commodities.
Malik said the government was fully aware of the financial difficulties faced by the public and was taking immediate measures to provide relief.
He also said the government had consulted with refineries and the discussions resulted in an agreement to reduce diesel prices by more than Rs32 per litre.
The petroleum minister thanked the refineries for supporting the government during the current period of volatility in international oil markets.
Government Plans Talks on Refinery Upgrades
Malik said he would also hold consultations with oil refineries in Karachi regarding their upgradation.
He pointed out that Pakistan’s refineries had not undergone major upgrades for more than seven decades, stressing the need to modernise the sector to improve domestic production and reduce the country’s dependence on imported petroleum products.
Information Minister Attaullah Tarar said Prime Minister Shehbaz Sharif had directed the petroleum ministry and relevant authorities to negotiate with the refineries and ensure that maximum possible relief was passed on to the public.
“Providing maximum relief to the people remains the government’s priority,” Tarar said, adding that the public could expect “more good news” in the coming days.
Fuel Prices Under Pressure Amid Middle East Conflict
Pakistan’s petroleum prices have risen sharply amid volatility in global oil markets following the escalation of the conflict involving the United States, Israel and Iran.
The surge in international oil prices has placed additional pressure on Pakistan’s economy, while transporters and petroleum dealers have also raised concerns over rising fuel costs.
The government has recently faced pressure from transporters and petroleum dealers over fuel pricing and other related issues. The All Pakistan Goods Transport Alliance had earlier suspended its nationwide strike following assurances from the federal and Sindh governments regarding progress on its demands.
Meanwhile, the Pakistan Petroleum Dealers Association had also demanded action on its outstanding issues and commitments made by the petroleum ministry.
The government’s latest move to reduce diesel prices aims to ease the impact of high fuel costs on consumers and limit inflationary pressure from expensive transportation and agricultural inputs.
The final price of high-speed diesel will be determined after OGRA completes and announces its calculations.
