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• Insists petrol could hit Rs544, diesel Rs790 per litre without subsidy
• Urges citizens to adopt austerity, reduce unnecessary travel
• Says govt has already absorbed Rs125bn cost over three weeks
ISLAMABAD: Prime Minister Shehbaz Sharif said he had rejected another recommendation for an increase in the prices of petrol and high-speed diesel (HSD), stressing that the government would bear a burden of Rs56 billion this week to protect consumers.
He made the announcement during an address to the nation on Friday, saying he had been recommended to increase the price of petrol by Rs95 per litre and that of HSD by Rs203 per litre.
“But I rejected it once again, considering the difficulties, and the federal government has decided to bear this burden,” he said.
He added that based on international market prices, petrol in Pakistan should currently be priced at Rs544 per litre, but was being sold at Rs322, while HSD should have been Rs790 per litre but was available at Rs335 due to government support.
The announcement came a week after he said he had rejected an increase of Rs76 per litre in the price of petrol and Rs177 per litre in that of diesel. On that occasion, the premier also said he had turned down a similar recommendation earlier following a hike in international oil prices on March 13.
The developments came amid a global fuel crisis resulting from the US-Israeli war on Iran, which began on Feb 28.
The government had announced unprecedented austerity measures on March 9 and had also raised petroleum product prices earlier this month as initial steps to deal with the situation.
In his address, PM Shehbaz said the world was currently facing an “extraordinary and extremely challenging situation”, in which even major economies were struggling.
“Even developed countries, which have resources in abundance, are facing an extreme economic crisis,” he said, adding that the potential impact of this crisis was not difficult to assess.
“But we had been preparing beforehand to deal with this storm. We immediately made decisions that were not easy to make,” he added.
The premier said a cut of Rs100 billion in the development budget and austerity measures had allowed the government to reduce the economic burden on the public.
“It must be clear to you today that every litre of petrol that is filled in your vehicle reflects the government’s policy of austerity and its sense of responsibility,” he said.
PM Shehbaz said these figures might seem like mere numbers, “but the government has borne the historic burden of Rs125bn over a period of three weeks so that you don’t have to bear it”.
He said this amount could have been utilised for several development projects. “But at this point, nothing is more important to me than your economic security,” he said.
The premier urged people to bring a “revolutionary change” in their daily lives.
“Think before travelling whether it is necessary; whether it is necessary to travel in a car or on a motorcycle every time.”
He said austerity was no longer an option but a collective responsibility.
PM Shehbaz said that while long queues for fuel and skyrocketing prices were being witnessed in other countries, his government had taken timely and effective measures to cushion the effects of the “storm of inflation”.
“But the government cannot do this alone. I cannot do this alone.
I request that you fully cooperate regarding a comprehensive plan that we are devising to deal with this challenging situation,” he said, adding that the plan would be announced in the coming days.
Published in Dawn, March 28th, 2026
