ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday directed Petroleum Minister Ali Pervaiz Malik to travel to Karachi immediately and negotiate with local oil refineries to secure relief for consumers facing sharply higher fuel prices.

The Prime Minister’s Office said Shehbaz instructed the minister to seek a reduction in the price of locally produced diesel.

“Most of the diesel is produced by local refineries,” the prime minister said during a meeting with Malik.

He directed the petroleum minister to personally complete talks with refineries as soon as possible.

“Provide immediate relief to the public to the maximum extent possible,” Shehbaz said.

The move comes as rising fuel prices put further pressure on households, businesses and transport operators across Pakistan.

Fuel prices climb again

The government raised petrol and high-speed diesel prices for August 19.

Petrol increased by Rs3.34 per litre to Rs334.54. High-speed diesel rose by Rs5.27 to Rs395.69 per litre.

The latest increase followed another hike a day earlier. Petrol and diesel prices had risen by Rs5.77 and Rs6.47 per litre, respectively.

The government also increased petrol pump dealers’ margins by Rs1.34 per litre last week.

The margin rose from Rs8.64 to Rs9.98 per litre. The decision followed demands from petrol pump owners for higher earnings.

Transporters raise pressure

The latest government move comes after a nationwide transporters’ strike over rising operating costs.

The All Pakistan Goods Transport Alliance deferred a planned nine-day nationwide strike on Sunday. The alliance agreed to suspend the action for 40 days after talks with federal and provincial authorities.

Fuel pricing remained one of the transporters’ major concerns.

Transporters had launched their strike on August 8. Their demands included changes to daily fuel price revisions, the petroleum levy, withholding tax, toll charges and axle-load regulations.

The government gave assurances that it would address their concerns. The assurances led transporters to defer the strike.

Jamaat-e-Islami has also launched nationwide protests over inflation and fuel costs. The party has demanded lower petrol prices and the withdrawal of the petroleum levy.

Government explores refinery relief

During Wednesday’s meeting, Shehbaz focused on the role of domestic refineries in reducing diesel costs.

The prime minister told Malik to negotiate directly with refinery operators. He also asked the minister to move quickly to secure relief for consumers.

The government hopes lower prices for locally produced diesel could ease some pressure on transporters and other fuel-dependent sectors.

The meeting was attended by Information and Broadcasting Minister Attaullah Tarar, Economic Affairs Minister Ahad Khan Cheema, Climate Change Minister Musadik Malik and National Assembly member Hamza Shehbaz.

Daily pricing adds uncertainty

Pakistan introduced a daily fuel pricing mechanism on July 17.

Under the new system, fuel prices rely on a seven-day average of international market rates. The government introduced the mechanism amid significant volatility in global oil markets.

International oil prices have remained sensitive to geopolitical developments. Brent crude futures also rose on Tuesday amid concerns about prolonged conflict and possible disruptions to regional energy supplies.

The daily pricing system means domestic consumers can face more frequent changes when international oil prices fluctuate.

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Petroleum levy remains a major burden

The government currently imposes a petroleum levy of Rs80 per litre on petrol and Rs78.30 on diesel.

Both fuels also carry a Rs5 per litre climate support levy.

The petroleum ministry had previously proposed reducing the petroleum levy to Rs50 per litre to ease pressure on consumers. However, the proposal has not been adopted.

With petrol already above Rs334 per litre and diesel approaching Rs396, pressure is mounting on the government to contain the impact of fuel costs.

The prime minister’s decision to send the petroleum minister to Karachi signals an attempt to find relief through negotiations with local refineries while the government continues to deal with wider demands from transporters, consumers and political groups.