Diesel Price Likely to Fall by Over Rs30 Per Litre: Federal Minister for Petroleum Ali Pervez Malik
Diesel prices were likely to fall by more than Rs30 per litre after local refineries agreed to cut their prices, according to Federal Minister for Petroleum Ali Pervez Malik. This announcement came on Wednesday during a press conference attended by Federal Minister for Information and Broadcasting Attaullah Tarar.
Malik stated that the Oil and Gas Regulatory Authority (OGRA) would soon announce the revised price after completing its calculations. He emphasized the government’s awareness of the difficulties faced by people due to the ongoing global crisis, including the war, and their efforts to alleviate these burdens.
"Despite being under the IMF program, the government has utilized more than Rs100 billion to protect the people," said Malik. They have also consulted provincial governments and implemented targeted subsidies for affected segments. The government used temporary fiscal space within the taxation system after discussions with the IMF.
The minister highlighted the significant increase in international prices of refined petroleum products due to the war in Russia, which has created supply challenges even for a country that produces oil. He noted that the crack margin for diesel reached $60-$70.
Local refineries, responsible for a major portion of Pakistan’s diesel consumption, agreed to provide relief to consumers after the Prime Minister personally requested them and directed the petroleum ministry to pursue the matter. These refineries will implement a significant reduction in diesel prices, benefiting farmers using tractors and tube-wells as well as students traveling by bus.
Malik expressed gratitude to the refineries for their cooperation, mentioning their previous support during the war when they agreed to base their prices on crude oil for one month.
