Pakistan Refineries Agree to Cut Diesel Prices After Government Pressure

Prime Minister Shehbaz Sharif directed Petroleum Minister Ali Pervaiz Malik to negotiate with local oil refineries in Karachi to lower the cost of locally produced diesel. The move followed mounting public pressure and protests from the Jamaat-e-Islami and the All Pakistan Goods Transport Alliance over successive fuel price hikes and petroleum levies.

Following these negotiations, Ali Pervaiz Malik announced that refineries agreed to reduce diesel prices by Rs30 to Rs32 per litre. This reduction aims to provide economic relief to farmers and transporters who have been impacted by high food inflation and transportation costs. The Oil and Gas Regulatory Authority of Pakistan is now responsible for calculating the final reduction and issuing the formal notification.

The pricing volatility stems from global market instability linked to the US-Israel war on Iran and the closure of the Strait of Hormuz, which prompted the government to shift to a daily fuel pricing mechanism. While the All Pakistan Goods Transport Alliance deferred a nationwide strike for 40 days and petrol pump dealers ended protests after the Economic Coordination Committee increased their profit margins, the government continues to manage international market pressures that may affect other petroleum products.