Islamabad: The price of locally produced diesel is expected to fall by up to PKR 32 per litre after oil refineries agreed to the government’s request to reduce prices, Petroleum Minister Ali Pervez Malik said.
Malik said the agreement was reached during two or three virtual meetings between the government and refineries, with the companies agreeing to a reduction of more than PKR 30 and up to PKR 32 per litre. The final reduction will be determined by the Oil and Gas Regulatory Authority (OGRA) after completing its calculations, the minister said while speaking to the media.
The talks followed Prime Minister Shehbaz Sharif’s direction to the petroleum ministry to engage with refineries and explore measures to provide relief to consumers amid elevated international oil prices. Information Minister Attaullah Tarar said the prime minister had directed the petroleum minister and petroleum secretary to negotiate with refineries and ensure that any available relief was passed on to consumers.
Tarar said OGRA would announce a reduction of around Rs32 per litre, noting that refining is a key component of diesel production and that the government had secured the relief through negotiations with refineries. The expected reduction comes as international oil prices remain elevated amid the ongoing conflict in the Middle East, increasing pressure on domestic fuel prices and household and business costs.
The government has previously introduced subsidies and targeted relief measures to limit the impact of higher fuel prices. Tarar said the government had spent PKR 130 billion on such measures during difficult economic conditions. He said diesel was particularly important for goods transporters and public transport operators, suggesting that a reduction in its price could help lower transportation costs and ease pressure on consumers.
The expected price cut could also support economic activity by reducing fuel-related costs across the transport and supply chain sectors. The final diesel price will depend on OGRA’s calculations and the subsequent official price notification.
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