ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday ordered his petroleum minister to negotiate with local refineries for a reduction in diesel prices, seeking relief for consumers as Pakistan grapples with elevated fuel costs amid disruptions to global energy markets caused by the Iran war.
Pakistan has repeatedly changed the frequency at which it reviews fuel prices since the conflict disrupted global energy markets and flows through the Strait of Hormuz, moving from a longstanding fortnightly system to weekly revisions before introducing daily pricing.
“Go to Karachi and ensure measures are taken to reduce the prices of locally produced diesel,” Sharif told Petroleum Minister Ali Pervaiz Malik, according to a statement from the Prime Minister’s Office.
The government raised the price of high-speed diesel by Rs5.27 per liter to Rs395.69 for Wednesday, while petrol rose by Rs3.34 to Rs334.54 per liter, according to a Petroleum Division notification issued on Tuesday night.
Sharif directed Malik to travel immediately to Karachi, Pakistan’s commercial hub and home to several oil refineries, to hold talks with the industry on lowering diesel prices.
“The bulk of diesel is produced in local refineries, and to reduce its price the petroleum minister should personally conclude negotiations with the refineries as soon as possible,” Sharif said.
“As much immediate relief as possible should be provided to the public,” he added.
The intervention comes days after Pakistan’s goods transporters suspended a nine-day nationwide strike for 40 days following talks with officials over demands that included changes to fuel pricing, toll charges and taxes. The transporters had opposed daily revisions in diesel prices and demanded that rates instead be fixed on a monthly basis.
Pakistan, which relies heavily on imported energy, has faced sharp swings in domestic fuel prices since the United States-Israel war with Iran began on Feb. 28.
Diesel rose from Rs280.86 per liter at the start of the conflict to a peak of Rs520.35 in early April, while petrol climbed from Rs266.17 to Rs458.40, before both subsequently retreated from those highs. The government said the April increases were driven by surging international oil prices caused by the conflict.
Pakistan has also been seeking to diversify its crude supplies in response to disruptions to Gulf energy flows, including by increasing imports from the United States.
