PM keeps petrol prices unchanged

March 21, 2026 (MLN): In a significant move ahead of Eid, Prime Minister Shehbaz Sharif has turned down a steep proposed hike in petroleum prices, opting instead to shield consumers from immediate inflationary pressure.

The rejected proposal had suggested raising petrol prices by Rs76 per litre and high-speed diesel (HSD) by  Rs177 for the upcoming week.

Despite mounting global oil prices, the government has decided to keep fuel prices unchanged for the second consecutive week. 

Accordingly, the price of petrol will remain at Rs321.17 per litre, while high-speed diesel will stay at Rs335.86 per litre.

To sustain this relief, the federal government is absorbing a financial burden of approximately Rs45 billion, achieved through cuts in development spending.

Over the past two weeks, the total fiscal cost of avoiding price hikes has reached Rs69 billion.

Cumulatively, the government has prevented increases of around Rs126 per litre on petrol and Rs251 per litre on diesel.

This includes Rs24 billion paid last week to oil marketing companies as price-differential claims.

Addressing the nation ahead of Eid, the prime minister noted that the decision was made with public hardship in mind, particularly after a recent increase of Rs55 per litre had already strained household budgets.

He pointed to escalating global oil prices, driven by geopolitical tensions, particularly the ongoing Middle East conflict, as a major challenge.

International crude prices, he noted, surged sharply from around $72 per barrel to over $150 within weeks, intensifying inflationary risks worldwide.

While acknowledging that the current approach offers temporary relief, he cautioned that it is not sustainable in the long run. The premier also raised concerns that blanket subsidies benefit all segments of society, including the affluent.

To address this imbalance, he has directed relevant authorities to develop a targeted subsidy framework to ensure that future relief measures benefit only deserving and vulnerable groups.

Framing the moment in the spirit of Eid, the prime minister emphasized unity, compassion, and shared responsibility, urging the nation to support one another amid global economic uncertainty.

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