Govt announces up to Rs32 reduction in diesel price after refinery talks

The government announced a substantial decrease in diesel prices, up to Rs32 per litre, after holding talks with oil refineries to alleviate consumer burdens amid surging global fuel costs. Petroleum Minister Ali Pervez Malik disclosed that refineries had agreed to the government's proposal to slash the price of domestically produced diesel by over Rs30 to Rs32 per litre. Prime Minister Shehbaz Sharif had directed the petroleum ministry to engage with refineries in search of relief for the public.

After conducting several virtual meetings with the refineries, they accepted the government's demand for a considerable price reduction, with the final reduction to be finalized by the Oil and Gas Regulatory Authority (OGRA) following their calculations. Information Minister Attaullah Tarar revealed that the prime minister had convened a meeting earlier that day and instructed the petroleum minister and secretary to negotiate with refineries to pass any possible relief to the public. OGRA is expected to announce a Rs32 reduction soon, according to Tarar.

The government acknowledged the financial hardships faced by the public, especially as international oil prices soared due to the ongoing conflict in the Middle East. Information Minister Tarar highlighted that the government had previously provided subsidies and targeted relief measures, spending Rs130 billion to mitigate fuel price increases during challenging economic conditions.

Describing the latest reduction as a significant relief for the public, Tarar emphasized that lower diesel prices could help reduce transportation costs and lessen the burden on consumers.

He expressed optimism that the reduction would positively impact economic activity and anticipated further positive developments in the days ahead.