PM directs petroleum minister to travel to Karachi, hold talks with oil refineries for reducing diesel prices

Prime Minister Shehbaz Sharif instructed Petroleum Minister Ali Pervaiz Malik to visit Karachi and engage in discussions with oil refineries in a bid to lower diesel prices, according to the Prime Minister's Office (PMO). This directive emerged during a meeting with the minister, attended by Information Minister Attaullah Tarar, Economic Affairs Minister Ahad Khan Cheema, Climate Change Minister Dr Musadik Malik, and MNA Hamza Shehbaz.

The PMO reported that Sharif ordered Malik to "promptly" arrive in Karachi and implement steps to provide public relief concerning fuel prices. He further directed the minister to "negotiate with the oil refineries" and "implement measures to reduce the price of locally produced diesel." The petroleum minister is expected to personally conclude negotiations with the refineries to lower their prices as soon as possible, with the aim of providing maximum relief to the public immediately.

Last week, the Pakistan Petroleum Dealers' Association (PPDA) had issued a 72-hour ultimatum to the federal government, alleging the government's failure to fulfill promises made by the petroleum minister. The dealers demanded a replacement of the current fixed margin with a variable margin tied to the retail prices of petrol and diesel, suggesting a 8pc margin based on the retail price of both fuels.

In an attempt to prevent a nationwide strike, the government approved a 15.5 per cent increase in dealers' margins on both petrol and high-speed diesel, raising the dealers' margin from Rs8.64 to Rs9.98 per litre, effective from September 1. Despite this, the government retained the daily pricing mechanism, introduced amid global oil disruptions due to the Middle East conflict.