Prime Minister Shehbaz Sharif on Wednesday directed Petroleum Minister Ali Pervaiz Malik to travel to Karachi and hold negotiations with oil refineries to reduce diesel prices, the Prime Minister’s Office (PMO) said.

The premier issued the directive during a meeting with the petroleum minister, which Information Minister Attaullah Tarar, Economic Affairs Minister Ahad Khan Cheema, Climate Change Minister Dr Musadik Malik, and MNA Hamza Shehbaz also attended.

According to the PMO, the prime minister directed Malik to “immediately” reach Karachi and take steps for providing the public relief with regard to fuel prices.

It said he directed the minister to “hold negotiations with the oil refineries” and “ensure measures to reduce the price of locally produced diesel”.

“The petroleum minister himself should complete negotiations with the refineries as soon as possible to reduce its prices. As much relief as possible should be provided to the public immediately,” it said.

The development comes after the government on Tuesday raised the price of petrol by Rs3.34 per litre and that of high-speed diesel by Rs5.27 under its daily pricing mechanism, which was introduced amid global oil disruptions due to the Middle East conflict.

Last week, the Pakistan Petroleum Dealers’ Association (PPDA) had given the federal government a 72-hour ultimatum, accusing it of failing to honour assurances made by the petroleum minister regarding its demands.

The dealers had sought replacement of the existing fixed margin with a variable margin linked to the retail prices of petrol and diesel, proposing that it be set at 8pc of the retail price of both fuels.

In a move aimed at averting the nationwide strike, the government on Friday approved a 15.5 per cent increase in dealers’ margins on both petrol and high-speed diesel.

The decision raised the dealers’ margin on both fuels by Rs1.34 per litre, from Rs8.64 to Rs9.98 per litre. The revised margin is scheduled to take effect from Sept 1.

The shift from fortnightly to daily petroleum price revisions added another demand from dealers, who sought to link their margins to retail prices. The government, however, decided to retain the daily pricing mechanism.