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

Dawn reported that the government announced a sharp cut in diesel prices on Wednesday after talks with petroleum refineries. Petroleum Minister Ali Pervez Malik said the reduction would exceed Rs30, while Tarar, speaking after Malik, put it at Rs32. The move follows a run of diesel price increases driven by a steep rise in global fuel costs tied to the Middle East conflict.

According to Malik, the refineries agreed to the government's request, acknowledging their own difficulties, after several online sessions prompted by the prime minister. He cited a diesel crack margin over crude of $60 to $70, and noted that much of the diesel used locally is refined in the country. He added that more than Rs100 billion had been earmarked to cushion consumers, despite Pakistan being under an IMF programme.

Fuel prices will be set each day instead of weekly, the minister had said earlier, amid fresh clashes between Iran and the US. Malik expects the cut to bring relief to farmers using diesel for tractors and tube wells, and to bus users. He also plans to visit Karachi next week to thank the city's refineries, and refinery upgrades are due to begin within days.