ISLAMABAD – Prime Minister Shehbaz Sharif has once again rejected a proposal to significantly increase fuel prices, opting instead to keep rates unchanged and protect consumers from the impact of rising global oil prices.
Read More: Government releases Rs27bn to keep petrol prices lower
In a televised address on Friday, the premier said the government would bear an estimated financial burden of Rs56 billion rather than pass the cost on to the public. The decision coincided with the scheduled fortnightly fuel price review and follows a similar move on March 20 when prices were also kept unchanged.
Sharif revealed that a summary had recommended a sharp increase of Rs95 per litre for petrol and Rs203 per litre for diesel. However, he said the proposal was turned down in the public interest despite growing pressure from international markets.
Prime Minister Shehbaz Sharif, in his televised address, said a proposal to hike petrol by Rs. 95 and diesel by Rs. 203 was rejected by me to protect citizens from additional financial burden.#ShehbazSharif #MiddleEastTensions #EconomicRelief #PakistanTV #PakistanTVglobal pic.twitter.com/1t4fCwMHHD
— Pakistan TV (@PakTVGlobal) March 27, 2026
He noted that petrol should currently be priced at Rs544 per litre but is being sold at Rs322, while diesel should cost Rs790 per litre compared to its current price of Rs335. According to the prime minister, the government has already spent Rs69 billion to prevent cumulative increases of Rs127 per litre in petrol and Rs252 per litre in diesel in recent weeks.
The announcement comes amid a global fuel crisis triggered by tensions involving the United States, Israel and Iran, which have disrupted supply chains and pushed crude oil prices higher.
Earlier, the government raised fuel prices by Rs55 per litre, prompting austerity measures such as reduced fuel allowances, fewer protocol vehicles, and an additional weekly holiday. Authorities are also considering subsidised fuel for students.
Read More: Govt decides to keep petroleum prices unchanged
Sharif warned that prices may rise if the crisis persists, adding that Pakistan is actively engaging diplomatically to promote regional stability.