• Ministers say cheaper fuel will benefit farmers, goods and public transport users
• Ali Pervaiz Malik to visit Karachi to thank refiners for ‘understanding difficulties’ facing govt amid US-Iran war
• Tarar hints at more good news to come; says PM Shehbaz’s administration remains committed to providing ‘any possible relief’ to the public
ISLAMABAD: The government drastically reduced the price of high-speed diesel fuel on Wednesday, following “successful” talks with petroleum refineries.
Addressing a press conference, Minister for Petroleum Ali Pervaiz Malik and Information Minister Attaullah Tarar announced that the successful negotiations with oil refineries had paved the way for a reduction of around Rs32 per litre in diesel prices, which would provide “major relief” to the public.
Subsequently, his ministry revised the price of diesel down by Rs32.63 to Rs363.06 per litre, while the price of petrol rose by Rs2.97 to Rs337.51 per litre.
At the outset of his press talk, the petroleum minister said the government was aware of the difficulties faced by the public because of rising petroleum product prices amid the war in the Middle East.
“The government is trying its best to address these issues using its limited resources,” he said.
The minister said the government had allocated more than Rs100 billion over the past three to four months to shield the public from the impact of rising prices, despite being under an International Monetary Fund (IMF) programme.
He assured the public that the government would continue to “protect” them during the difficult period by ensuring adequate fuel supplies.
War blues
Mr Malik said that the renewed escalation of the war in the region had led to a sharp increase in the prices of refined petroleum products in global markets.
“The crack margin for refined products over crude oil is now touching $60 to $70 for diesel,” Mr Malik said.
He said a significant portion of the diesel consumed in Pakistan was supplied to oil marketing companies after crude oil was refined locally.
“PM Shehbaz also made a request to the refineries. He instructed me, and after that we had two or three virtual meetings with the refineries,” the minister said.
“I am happy to announce that the refineries have accepted the government’s demand while acknowledging the difficulties, and decided on a significant decrease in the price of diesel,” he said.
Mr Malik said the move would provide some relief to farmers, who use diesel to run tractors and tube wells, as well as the public, who rely on buses for transportation.
He announced that, on the prime minister’s instructions, he would also visit Karachi next week with his team to thank refiners. The minister said the government would also begin work on upgrading refineries.
He added that the government would also begin working on operationalising bonded schemes to facilitate the storage of oil at border locations, in cooperation with friendly countries.
Diesel is regarded the most inflationary petroleum product, because of its extensive use in freight transportation and agriculture, which has a direct impact on supply chain costs.
Last week, the government approved a 15.5 per cent increase in dealers’ margins on both petrol and high-speed diesel to quell a strike by the Pakistan Petroleum Dealers’ Association (PPDA).
Last month, the Brownfield Refining Policy was okayed after a six-year gap, which provides stability clauses to protect investment, offers tax incentives and foreign exchange accounts for the import of machinery against the export of furnace oil, besides enhancing offshore and onshore storage capacity for greater energy security.
‘More good news’
In his remarks, Mr Tarar said the premier had chaired a meeting earlier in the day, attended by the petroleum minister and petroleum secretary, where he had 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. 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.”
The information minister expressed hope that the move would have a positive impact on the economy and hinted at “more good news” in the coming days.
Published in Dawn, August 20th, 2026
