Prime Minister Shehbaz Sharif has refused a proposed hike in petrol and diesel prices, saying the government will absorb the extra cost instead of passing it on to the public. He announced in a televised address on March 27, 2026.
Officials had recommended raising petrol prices by Rs95 per litre and diesel by Rs203 per litre to match global oil market rates. If those increases were applied, petrol in Pakistan would have been around Rs544 per litre and diesel about Rs790 per litre. Instead, fuel is being sold at around Rs322 for petrol and Rs335 for diesel.
Mr. Sharif said the government will take on an estimated Rs. 56 billion financial burden this week to protect consumers from higher fuel costs. He pointed out that over the past three weeks, the state has already absorbed about Rs125 billion by keeping prices unchanged despite global price rises.
The prime minister said protecting people’s economic wellbeing is a priority, especially as global oil prices remain high. He also asked citizens to be patient and work together to cope with the economic challenges the country is facing.
Critics argue that keeping fuel prices low adds pressure on government finances and could widen the budget deficit. But supporters say it gives relief to households and businesses that are already struggling with inflation and rising costs of everyday goods.
The decision comes as Pakistan deals with wider economic pressures, including high inflation and slow growth.
