Govt announces 'significant decrease of Rs30-32' in diesel price after talks with refineries

The government on Wednesday announced a “significant decrease” in diesel prices after holding talks with petroleum refineries.

Talking to the media, Petroleum Minister Ali Pervez Malik said diesel prices would be reduced by more than “Rs30 to Rs32” following the discussions with refineries.

“Prime Minister Shehbaz Sharif also made a request to the refineries. He instructed me, and after that we had two or three virtual meetings with the refineries.

“I am happy to announce that the refineries have accepted the government’s demand while acknowledging the difficulties, and decided on a significant decrease of more than Rs30 or Rs32 in the diesel price.

“After some time, you will see that Ogra, after its calculations, will finalise it.”

Taking the floor, Tarar said the premier had chaired a meeting earlier in the day, attended by the petroleum minister and petroleum secretary, at which he directed officials to hold negotiations with oil refineries and extend “any possible relief to the public”.

“Refining is a key part of diesel production,” Tarar said. “Ogra will soon announce a Rs32 reduction. The prime minister specifically requested negotiations, and the petroleum minister worked hard to ensure that they were successful.”

He added that the premier and the government understood the hardships faced by the people, noting that oil prices had risen worldwide due to the war in the Middle East.

“To extend relief to the people whenever possible, the prime minister used subsidies, targeted subsidies [and] spent Rs130bn in difficult conditions to prevent fuel prices from rising,” Tarar explained.

“This is a major step and a gift from the prime minister to the people,” he added. “Our goods transporters and public transport use diesel, and negotiations on locally produced diesel have been successful. I believe this Rs32 decrease will lift a weight off the people’s shoulders.”

Tarar expressed hope that the move would have a positive impact on the economy and hinted at “more good news” in the coming days.

More to follow