Staff Report
ISLAMABAD: The government is set to provide major relief to consumers as oil refineries have agreed to reduce the price of diesel by more than Rs30 per litre following consultations with the government, Petroleum Minister Ali Pervaiz Malik said on Wednesday.
“Oil refineries, responding to the government’s request, have decided to provide relief of Rs30-32 per litre. In a few moments, Ogra will unveil its calculations before the public,” the minister said while addressing a press conference along with Information Minister Attaullah Tarar.
The presser came hours after Prime Minister Shehbaz Sharif had directed Malik to visit Karachi for talks with local oil refineries to secure a reduction in diesel prices and provide relief to the public.
According to the Prime Minister’s Office, PM Shehbaz instructed the petroleum minister to engage with local refineries and conclude negotiations at the earliest. He noted that a major portion of the diesel consumed in the country was produced by domestic refineries and called for measures to bring down its price and transfer the benefit to consumers.
Petroleum prices have skyrocketed due to the ongoing US-Israel war on Iran, with diesel currently standing at nearly Rs400 per litre.
A significant portion of the transport sector relies on high-speed diesel. Its price is considered inflationary since it is predominantly used in heavy goods transport vehicles, trucks, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers. The consumption of high-speed diesel particularly contributes to the increased prices of vegetables and other food items.
During the presser, Malik said the new diesel price would show a significant reduction today, adding that the government would ensure the benefit of the lower refinery price was passed on to consumers.
“…I am thankful to the refineries,” he said, highlighting that they’ve helped the government during the war by reducing the price of petroleum products.
The minister said that he would hold consultations with the refineries in Karachi on the upgradation of refineries — which has not been done “for more than seven decades”.
Tarar, while briefing journalists, said the prime minister had chaired the meeting and directed the petroleum minister and relevant officials to negotiate with oil refineries and ensure whatever relief was possible was provided to the public.
He said providing maximum possible relief to the people had remained the government’s priority, adding that the public would receive “more good news” in the coming days.
Malik said the government was fully cognisant of the difficulties and hardships being faced by the people and was making immediate efforts to provide whatever relief was possible.
He said the decision to subsidise petroleum products was also part of those efforts, while stressing that the government would continue taking every possible step to protect consumers.
The petroleum minister attributed the recent increase in petroleum prices to the escalation in the intensity of the war, saying several countries were also facing difficulties in securing diesel supplies.
He said the government had consulted with the refineries and the discussions had resulted in their decision to reduce the price of diesel by more than Rs32 per litre.
The government’s move follows mounting public criticism over repeated fuel price increases and their impact on inflation. The pressure has intensified after the government shifted from a fortnightly review of petroleum prices to a daily mechanism amid heightened volatility in international oil prices following renewed hostilities in the Middle East.
The government had previously moved to a weekly fuel price review after the conflict erupted on February 28, when Israel and the United States launched attacks on Iran, prompting Tehran to close the Strait of Hormuz, a crucial route for global energy supplies.
The fuel price dispute has also fuelled pressure from transporters and petroleum dealers. Earlier this week, the All Pakistan Goods Transport Alliance suspended its nine-day nationwide strike for 40 days after the federal and Sindh governments assured it of progress on key demands, including petroleum pricing.
The Pakistan Petroleum Dealers Association had also issued a 72-hour ultimatum to the government earlier this month, demanding resolution of its outstanding issues and implementation of commitments made by the petroleum minister.
The protest was later called off after the Economic Coordination Committee approved an increase in dealers’ margins on petrol and high-speed diesel.
Meanwhile, the Jamaat-e-Islami continued its sit-ins in provincial capitals for a fourth consecutive day, protesting high petroleum levies, rising inflation and increased electricity bills as higher fuel costs continued to squeeze household budgets.
