ISLAMABAD (Dunya News) – Prime Minister Shehbaz Sharif has once again rejected a summary proposing a sharp increase in petrol and high-speed diesel (HSD) prices, opting instead to maintain existing rates and shield consumers from the impact of rising global oil prices.
In an address to the nation on Friday, the prime minister confirmed that the government would absorb an estimated financial burden of Rs56 billion rather than pass the increase on to the public.
The decision comes on the day when fuel prices were scheduled for a fortnightly review, following a similar move on March 20 when rates were also kept unchanged.
Price gap
Sharif revealed that he had received a summary recommending a hike of Rs95 per litre for petrol and Rs203 per litre for diesel. Despite mounting pressure due to global oil market volatility, he said the proposal was rejected in the public interest.
According to the prime minister, petrol should currently be priced at Rs544 per litre, but is being sold at Rs322. Similarly, diesel should stand at Rs790 per litre, yet consumers are paying Rs335.
He said the government had already spent Rs69 billion to prevent cumulative increases of Rs127 per litre in petrol and Rs252 per litre in diesel in recent weeks, underscoring the scale of fiscal intervention being undertaken.
Economic pressure
The announcement comes amid a broader global fuel crisis driven by escalating tensions involving the United States, Israel and Iran, which have disrupted supply chains and pushed crude oil prices higher.
Earlier this month, the government had increased petrol and diesel prices by Rs55 per litre, roughly a 20 percent rise, citing international market pressures. In response, authorities introduced austerity measures aimed at reducing fuel consumption and easing fiscal strain.
These measures include an additional weekly holiday, cuts in free petrol allocations for ministers, restrictions on the use of official protocol vehicles, and proposals to provide subsidised fuel for students.
In a parallel move, the government also raised the petroleum levy on high-octane fuel by Rs200 per litre, taking the total levy to Rs300 per litre and pushing its retail price to around Rs600 per litre, primarily targeting luxury vehicle users.
Diplomatic efforts
Turning to regional developments, the prime minister said Pakistan is actively engaged on diplomatic fronts to mitigate the impact of ongoing tensions in the Middle East. He noted that multiple high-level discussions have taken place with leadership in Iran and Gulf countries to promote stability.
He described Pakistan’s diplomatic outreach as both an international obligation and a moral responsibility, adding that Foreign Minister Ishaq Dar is working with full commitment on the matter.
Sharif also acknowledged the role of Chief of Defence Forces and Chief of Army Staff Field Marshal Asim Munir, stating that the military leadership is playing a key part in supporting efforts aimed at maintaining regional peace.
The prime minister warned that fuel prices could rise further if the conflict continues to disrupt global markets, highlighting the ongoing risks to Pakistan’s fragile economy.