PM Moves To Cut Diesel Prices Through Refinery Talks
Prime Minister Shehbaz Sharif on Wednesday, August 19, 2026, instructed Petroleum Minister Ali Pervaiz Malik to travel to Karachi and hold urgent negotiations with local oil refineries in an effort to reduce the price of domestically produced diesel. The direction came in Islamabad as the government faced growing public pressure over repeated fuel price increases.
The Prime Minister’s Office said the petroleum minister had been asked to engage refinery operators directly and seek practical relief for consumers. The move signals that the federal government is looking beyond routine pricing notifications and attempting to create room for a targeted reduction in high-speed diesel, a fuel that heavily influences transport, agriculture and goods movement.
The development comes after another upward revision in petroleum prices, with petrol rising by Rs3.34 per litre and high-speed diesel by Rs5.27 per litre for August 19. The revised prices placed petrol at Rs334.54 per litre and diesel at Rs395.69 per litre, increasing anxiety among households, transporters, farmers and businesses already dealing with inflationary pressure.
According to the official account of the meeting, Prime Minister Shehbaz told the petroleum minister to complete consultations with refineries as soon as possible and secure maximum possible relief for the public. The prime minister also noted that a large share of diesel consumed in the country is produced by local refineries, making direct talks with the sector important for any immediate intervention.
Several senior government figures attended the meeting, including Information Minister Attaullah Tarar, Economic Affairs Minister Ahad Khan Cheema, Climate Change Minister Musadik Malik and National Assembly member Hamza Shehbaz. Their presence reflected the wider economic and political sensitivity of fuel pricing at a time when energy costs are shaping both household budgets and national transport operations.
Fuel prices have been rising rapidly in recent days. Before the latest increase, the government had already raised petrol by Rs5.77 and diesel by Rs6.47 in a separate revision, while dealers’ margins were also increased by Rs1.34 per litre last week. These adjustments have amplified public debate over how much of the final price comes from international markets, domestic margins, levies and policy choices.
The issue has also triggered organised pressure from transporters and political groups. The All Pakistan Goods Transport Alliance recently deferred a nine-day nationwide strike for 40 days after negotiations with federal and provincial authorities, while Jamaat-e-Islami launched protests calling for lower petrol prices and a withdrawal of the petroleum levy.
Pakistan shifted to a daily fuel pricing system on July 17, linking domestic prices to a seven-day average of international market rates. Officials have argued that the mechanism reflects global volatility more quickly, but critics say frequent changes make planning difficult for transport operators, businesses and consumers who rely on predictable fuel costs.
The economic impact could be significant if the Karachi talks produce even a limited cut in locally produced diesel. High-speed diesel is central to freight, public transport, farm machinery and supply chains, so any reduction may help slow the pass-through of fuel costs into food prices, logistics charges and daily consumer goods.
The next step will depend on the outcome of Petroleum Minister Ali Pervaiz Malik’s discussions with local refineries. If the government secures cooperation, it may announce a relief measure focused on diesel; if negotiations fail, pressure over fuel prices is likely to intensify as transporters, consumers and opposition groups continue demanding broader reductions.