Govt to announce over Rs30 reduction in diesel price after refinery talks

The government on Wednesday announced a significant reduction of more than Rs30 per litre in the price of diesel following successful negotiations with oil refineries aimed at providing relief to consumers amid elevated global fuel prices.

Petroleum Minister Ali Pervez Malik said refineries had agreed to the government’s request to reduce the price of locally produced diesel by more than Rs30 to Rs32 per litre.

Speaking to the media, the minister said Prime Minister Shehbaz Sharif had directed the petroleum ministry to engage with refineries and seek possible relief for consumers.

“After two or three virtual meetings with the refineries, they have accepted the government’s demand and agreed to a significant reduction of more than Rs30 or Rs32 in diesel prices,” Malik said.

He added that the final reduction would be determined by the Oil and Gas Regulatory Authority (OGRA) after completing its calculations.

Information Minister Attaullah Tarar said the prime minister had chaired a meeting earlier in the day and instructed the petroleum minister and secretary to negotiate with refineries to pass on any possible relief to the public.

“OGRA will sooner announce a Rs32 reduction,” Tarar said, adding that refining was a key component of diesel production and the government had succeeded in securing relief through negotiations.

He said the government was aware of the economic difficulties faced by the public, particularly as international oil prices had risen amid the conflict in the Middle East.

Tarar said the government had previously provided subsidies and targeted relief measures and had spent Rs130 billion to contain increases in fuel prices during difficult economic conditions.

Describing the latest reduction as a major relief for the public, he noted that diesel was widely used by goods transporters and public transport operators, meaning a lower price could help reduce transportation costs and ease pressure on consumers.

Tarar expressed hope that the reduction would have a positive impact on economic activity and said further positive developments could be expected in the coming days.