Govt cuts diesel price by Rs32 per litre after PM’s intervention

Shehbaz Sharif directs petroleum minister to take immediate steps to provide relief to individuals Oil refineries agree to cut diesel rate by Rs 32 per litre after discussions: Ali Pervaiz.

Key points

• United Nations Resident Coordinator and Humanitarian Coordinator in Pakistan, Mohamed Yahya, on Wednesday, paid a farewell call on Prime Minister Muhammad Shehbaz Sharif.
• Afterwards, Minister for Petroleum Ali Pervaiz Malik unveiled that oil refineries agreed to reduce diesel cost by around 32 rupees per litre to provide relief to the residents.
• The administration has jacked up petroleum levy on HSD by Rs 1.72 per litre to Rs 80 per litre.
• He was addressing a joint news conference with Minister for Information and Broadcasting Attaullah Tarar in Islamabad.
• He recalled with appreciation the UN's role in mobilizing international backing for Pakistan, particularly during the 2022 floods.

ISLAMABAD – The federal administration on Wednesday slashed the rate of High Speed Diesel by Rs32.63 per litre while jacked up the cost of Petrol Rs 2.97 per litre, effective for one day.

"Based on revised petroleum pricing mechanism, issued by Federal Government, Oil and Gas Regulatory Authority (OGRA) has revised the ex-depot prices of the petroleum products for 20th August, 2026 "remarked a press release issued by the Petroleum Division here Wednesday.

While after drop HSD will go down to Rs 363.06 per litre from the current Rs 395.69 per litre, after the hike, Petrol will go up to Rs 337.51 per litre from the existing Rs 334.54 per litre. The new rates will be effective for today (Thursday).

Meanwhile, the administration has jacked up petroleum levy on HSD by Rs 1.72 per litre to Rs 80 per litre.

While high-speed diesel is mainly employed in the heavy transport sector, petrol is mostly applied in private transport, small vehicles, three wheelers and two-wheelers.

It is worth to note that due to volatility in global oil rates, the federal administration has shifted to a daily fuel rate review mechanism. Prime Minister Shehbaz Sharif on Wednesday directed Petroleum Minister Ali Pervaiz Malik to immediately reach Karachi and hold negotiations with oil refineries to secure a reduction in locally produced diesel rates and provide relief to consumers.

In practice, the prime minister issued the directives during a session with the petroleum minister. It was additionally attended by Minister for Information and Broadcasting Attaullah Tarar, Minister for Economic Affairs Ahad Khan Cheema, Minister for Climate Change Dr Musadik Malik and MNA Hamza Shehbaz.

He directed the minister to ensure necessary measures to reduce the rates of locally produced diesel through negotiations with the refineries.

"Most of the diesel is produced locally by oil refineries. The petroleum minister should personally complete negotiations with the refineries at the earliest to secure a reduction in rates, " the prime minister stated. He directed that maximum feasible immediate relief should be provided to the residents.

He was addressing a joint news conference with Minister for Information and Broadcasting Attaullah Tarar in Islamabad. Ali Pervaiz Malik remarked the final calculation of reduction in diesel costs will be confirmed by OGRA.

He remarked the administration is fully cognizant of the difficulties being faced by the individuals due to the war and is taking measures within its available resources to provide relief.

As well as students travelling by buses, ali Pervaiz Malik remarked the reduction will particularly benefit farmers using tractors and tube-wells.

In practice, the minister thanked the country's refineries for accepting the government's request and remarked the administration would pass on the full benefit to consumers.

He remarked, on the directives of Prime Minister Shehbaz Sharif, he will visit refineries in Karachi next week to discuss their upgradation and measures to strengthen Pakistan's energy security.

He remarked the administration will additionally work on bonded schemes and crude oil storage arrangements with friendly countries to address vulnerabilities in the country's energy sector.

For context, the Minister pressed the residents to remain patient, assuring them that the administration will continue to provide relief as fiscal space becomes available.

Meanwhile, United Nations Resident Coordinator and Humanitarian Coordinator in Pakistan, Mohamed Yahya, on Wednesday, paid a farewell call on Prime Minister Muhammad Shehbaz Sharif.

Meanwhile, the prime minister thanked Yahya for his valuable contribution to strengthening Pakistan-UN cooperation during his tenure, and for the UN Country Team's continued backing to Pakistan's development and humanitarian priorities, including climate resilience, sustainable development, and disaster response.

Deputy Prime Minister and Foreign Minister, Senator Mohammad Ishaq Dar, Special Assistant to the Prime Minister (SAPM), Syed Tariq Fatemi and other senior administration office-holders were additionally present during the gathering, PM Office Media Wing stated in a press release.

Notably, the prime minister congratulated Yahya on his appointment as Assistant Secretary-General for Humanitarian Affairs and Deputy Emergency Relief Coordinator at the UN Office for the Coordination of Humanitarian Affairs (OCHA), describing it as a fitting recognition of his experience and commitment.

He wished him continued success in his new assignment and expressed confidence that Pakistan's close partnership with the UN would continue to grow.

While thanking the Prime Minister for the appreciation, Yahya expressed his gratitude for the cooperation extended to him and the UN Country Team by the Administration of Pakistan throughout his tenure, and reaffirmed the United Nations' continued commitment to supporting Pakistan's development and humanitarian agenda.

Taken together, the developments around govt cuts diesel price by Rs32 per litre after PM's intervention point to a situation that is still moving, and the coming days should bring more clarity.