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

Karachi: Malik Khuda Bakhsh, chairman of the Pakistan Petroleum Dealers Association (PPDA), has stated that the ongoing refinery up-gradation programme could lead to further reductions in diesel and other petroleum product prices. This is due to the increased domestic refining capacity and improved flexibility of local refineries resulting from the upgrades.

During a visit to Karachi on Wednesday, Petroleum Minister Ali Pervaiz Malik informed Khuda Bakhsh about the refinery up-gradation programme. The minister mentioned that upgraded refineries would be able to process both heavier and lighter crude oil grades, thus increasing their refining capacity. Khuda Bakhsh noted that petroleum dealers discussed mechanisms for reducing petroleum product prices with the Ministry of Petroleum as part of their five-point agenda.

The ministry responded to the dealers' concerns, leading to relief for consumers in the form of reduced diesel prices. The PPDA chairman believes that the completion of further refinery upgrades could provide additional opportunities to lower prices of diesel and other petroleum products. He urged the government to expedite the up-gradation programme to boost domestic production to meet the country's requirements.

Khuda Bakhsh emphasized that enhancing the capacity and efficiency of domestic refineries would decrease reliance on imported crude oil and refined petroleum products. He stressed that any benefits resulting from these improvements should be passed on to consumers.