Refinery upgrades could pave way for diesel price cuts: PPDA chief

KARACHI: Pakistan Petroleum Dealers Association (PPDA) Chairman Malik Khuda Bakhsh has said that the ongoing refinery up-gradation programme could create room for further reductions in diesel and other petroleum product prices by increasing domestic refining capacity and improving the flexibility of local refineries.

According to a statement issued by the PPDA on Thursday, Petroleum Minister Ali Pervaiz Malik briefed Khuda Bakhsh during his visit to Karachi on Wednesday about the refinery up-gradation programme.

The petroleum minister, according to the PPDA chairman, said that upgraded refineries would be able to process both heavier and lighter grades of crude oil, which would increase their refining capacity.

Khuda Bakhsh said petroleum dealers had discussed with the Ministry of Petroleum, as part of their five-point agenda, mechanisms for reducing petroleum product prices through improvements in domestic refining. He said the ministry had taken up the issue raised by the dealers, which, according to him, resulted in relief for consumers through a reduction in diesel prices.

The PPDA chairman said completion of further refinery upgrades could provide additional scope for reducing prices of diesel and other petroleum products. He urged the government to accelerate the up-gradation programme to increase domestic production in line with the country’s requirements.

Khuda Bakhsh said improving the capacity and efficiency of domestic refineries could reduce reliance on imported crude oil and finished petroleum products. He stressed that any resulting benefit should be passed on to consumers.

Copyright Business Recorder, 2026