The government has reached an agreement with oil refineries to reduce the price of diesel by more than Rs30-32, Petroleum Minister Ali Pervez Malik announced on Wednesday.

The final price will be determined by OGRA after it completes its calculations.

Malik said the reduction followed several meetings with refineries held on Prime Minister Shehbaz Sharif’s instructions. The refineries have agreed to the government’s request despite higher global petroleum prices.

The cut is expected to provide relief to farmers, transporters and other diesel consumers, particularly those using diesel for tractors, tube wells and public transport.

The minister said the government has spent more than Rs100 billion in the past three to four months to limit the impact of rising fuel prices on consumers.

The government also plans to begin upgrading Pakistan’s oil refineries in the coming days, while work will be initiated on oil storage facilities under bonded schemes near border areas.