The federal government is set to reduce the price of diesel by more than Rs30 per litre after oil refineries agreed to provide relief following a request from authorities, Petroleum Minister Ali Pervaiz Malik announced on Wednesday.
Addressing a press conference alongside Information Minister Attaullah Tarar, Malik said refineries had decided to offer relief of Rs30 to Rs32 per litre, with the oil and gas regulatory authority (OGRA) set to announce the revised calculations shortly.
The announcement came hours after Prime Minister Shehbaz Sharif directed Malik to travel to Karachi for talks with local refineries to secure a reduction in diesel prices.
According to the Prime Ministers Office, Shehbaz noted that a major share of diesel consumed in the country was produced domestically and instructed officials to conclude negotiations at the earliest so the benefit could be transferred to consumers.
Diesel prices have surged due to the ongoing US-Israel war on Iran, with the fuel currently priced at nearly Rs400 per litre. High-speed diesel is widely used in heavy goods transport, including trucks, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers, making its price a major driver of inflation, particularly in vegetable and food prices.
Malik said the new diesel price would reflect a significant reduction from today and thanked refineries for supporting the government during the war by lowering the price of petroleum products. He added that he would hold further consultations with refineries in Karachi on upgrading refining infrastructure, which he said had not been undertaken in more than seven decades.
Tarar said the prime minister had chaired a meeting on the matter and directed the petroleum minister and relevant officials to negotiate with refineries to ensure maximum possible relief for the public. He said further relief measures were expected in the coming days.
Malik said the government was aware of the hardships faced by the public and was taking immediate steps to provide relief, including the decision to subsidise petroleum products.
He attributed the recent rise in fuel prices to the intensifying war, noting that several countries were facing difficulties securing diesel supplies. He said talks with refineries had resulted in an agreement to cut diesel prices by more than Rs32 per litre.
The relief announcement follows mounting public criticism over repeated fuel price hikes and their impact on inflation, which prompted the government to shift from a fortnightly to a daily price review mechanism amid volatility in international oil markets following the outbreak of hostilities in the Middle East.
The government had earlier moved to a weekly review after the conflict began on February 28, when Israel and the United States launched attacks on Iran, leading Tehran to close the Strait of Hormuz, a key route for global energy supplies.
The fuel pricing dispute has also drawn pressure from transporters and dealers. The All Pakistan Goods Transport Alliance suspended a nine-day nationwide strike for 40 days earlier this week after the federal and Sindh governments assured progress on key demands, including petroleum pricing.
Separately, the Pakistan Petroleum Dealers Association had issued a 72-hour ultimatum to the government demanding resolution of outstanding issues, a protest that was called off after the Economic Coordination Committee approved higher margins for dealers on petrol and high-speed diesel.
