ISLAMABAD: Prime Minister Shehbaz Sharif announced on Friday that he had rejected a summary to sharply increase the prices of petrol and high-speed diesel (HSD), saying the state would instead absorb the additional cost to shield citizens from further economic strain.
In a televised address, PM Sharif said he had received a summary from Oil and Gas Regulatory Authority (OGRA) proposing a rise of Rs95 per litre for petrol and Rs203 per litre for HSD. “However, I have rejected this summary,” he said.
PM Sharif opened his address by referencing the ongoing conflict in the Middle East, noting that Pakistan was working to mitigate the impact of rising oil prices while also pursuing diplomatic efforts to restore regional peace.
“Pakistan is making sincere and full-fledged mediatory efforts on the diplomatic front for an end to this war, so that the region and brotherly Muslim countries no longer face the destructive and negative consequences of this conflict,” he said, adding that the aim was to achieve lasting peace through collective wisdom and consultation.
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The prime minister stressed that Pakistan’s diplomacy was driven not only by international responsibility but also by religious duty and concern for the wider Muslim Ummah. “Irrespective of which school of thought or sect we belong to, as Muslims, we all wish for peace,” he added.
Sharif highlighted his own discussions with the leaders of Iran and Gulf countries, and noted that Deputy Prime Minister and Foreign Minister Ishaq Dar, along with Chief of Defence Forces (CDF) and Field Marshal Asim Munir, were playing active roles in advancing peace efforts.
“Ishaq Dar is working with dedication, Field Marshal Asim Munir plays a key role, and Pakistan’s diplomacy is both an international and religious duty amid a challenging global situation. I appeal to you to pray for the fruition of these efforts,” he added.
Turning to the domestic economy, PM Sharif said the world was 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 Pakistan had prepared in advance to meet these challenges, taking tough decisions such as cutting Rs100 billion from the development budget and implementing austerity measures. “It must be clear to you that today every litre of petrol that is filled in your vehicle reflects the government’s policy of austerity and its realisation of responsibility,” he added.
The Prime Minister reiterated that despite recommendations to raise petrol and HSD prices, the federal government would continue to bear the burden.
“The federal government has once again decided to bear this burden,” he said, estimating the cost at Rs56 billion for the week.
PM Sharif said that, based on international fuel prices, petrol in Pakistan should currently cost Rs544 per litre, but citizens were paying only Rs322. Similarly, HSD should be priced at Rs790 per litre, yet the government was providing it at Rs335.
“These figures may seem mere numbers, but the government has borne the historic burden of Rs125 billion over three weeks so that you do not have to bear it,” he said, noting that the funds could have been allocated to development projects. “At this point, nothing is more important to me than your economic security,” he added.
The federal government decided to maintain petroleum prices at their current levels, a move that has pushed the total Price Differential Claims (PDC) of Oil Marketing Companies (OMCs) to a staggering Rs 125 billion in just three weeks.
Despite a massive surge in international costs, Prime Minister Shehbaz Sharif rejected recommendations from the Oil and Gas Regulatory Authority (OGRA) to raise prices. The regulator recommended an increase of Rs 95 in petrol price and Rs 203 in High-Speed Diesel (HSD).
This decision comes as ex-refinery prices—the cost at which refineries sell to OMCs—skyrocketed over the last week. Petrol costs rose from Rs 266.17 to Rs 361.17, while HSD saw a massive jump from Rs 431.37 to Rs 564.17.
To address the backlog, the Finance Division released Rs 27 billion from the Prime Minister’s Austerity Fund on March 25. However, this only partially settles the Rs 69 billion owed from the previous two price reviews.
Price differential claims (PDC) of Oil Marketing Companies has jumped by Rs 56 billion for week effective from March 28 making the total PDC of Rs 125 billion since March 14.
On Friday, the federal government announced to keep the price of petrol unchanged at Rs 321.17 per litre and high speed diesel (HSD) at Rs 335.86 per litre.
To ensure national supply stability, four tankers from Oman—three carrying petrol and one carrying HSD—recently discharged their cargo at Pakistani ports, with two more vessels expected to arrive soon. Meanwhile, the fiscal burden of fuel subsidies continues to escalate; the weekly price review effective March 14 recorded a Rs 23 billion PDC, which nearly doubled to Rs 45 billion in the subsequent review on March 21.
The government also opted to unchanged the petroleum levy on both the fuel products. PL on petrol is Rs 105.37 and on HSD at Rs 55.24 per litre.
In response to soaring petrol prices, an increasing number of consumers are turning their vehicles with Compressed Natural Gas (CNG) as a more cost-effective fuel alternative. This shift comes as authorities maintain a strict ban on LPG cylinders in public transport due to safety concerns.
Copyright Business Recorder, 2026
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