Govt to announce over Rs32 per litre diesel price cut after 'successful talks' with refineries

Petroleum Minister Ali Pervez Malik said on Thursday that refineries had accepted the government’s request for a significant reduction in diesel prices and the Oil and Gas Regulatory Authority (OGRA) would announce a cut of around Rs30-32 per litre after completing its calculations. “The refineries have accepted the government’s request and decided to make a significant reduction in diesel prices. You will see a significant reduction of Rs30-32 within the next few moments, which OGRA will announce after completing its calculations,” said Malik while addressing a press conference alongside Information Minister Attaullah Tarar. Malik said the government was fully aware of the difficulties and hardships being faced by people because of the war and was making every possible effort within its limited resources to ease their burden. He said the prime minister had directed the government to undertake whatever efforts it could within its limited resources to ease these difficulties. “Despite being under the IMF programme, the government has used more than Rs100 billion to shield the people from these difficulties. Consultations were held with the provincial governments and, in addition, you have seen the rollout of targeted subsidies,” he said, referring to the measures taken by the government since the beginning of the war in the Middle East. He assured the public that the difficult period would eventually end and said the government would make full use of whatever fiscal space was available to ensure supplies and provide relief to the people. Malik also referred to the rising price of diesel around the world, saying the crack margin — the difference between the price of refined products and crude oil — for diesel had once again reached $60-70. He said the war situation in Russia had also made diesel availability difficult there, adding that even a country that produced its own oil was facing problems. The minister said Prime Minister Shehbaz Sharif had personally requested the refineries to provide relief in view of the difficulties being faced by the people.   This story is being updated...