PM Shehbaz rejects massive fuel price hike proposal, keeps petrol and diesel rates unchanged

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday rejected a summary proposing a steep increase in fuel prices, deciding to maintain existing petrol and diesel rates despite rising international oil costs.

The premier said he turned down a proposal that sought to raise petrol prices by Rs95 per litre and high-speed diesel by Rs203 per litre, adding that the government would not shift the financial burden onto consumers. Instead, the state would absorb an estimated Rs56 billion impact resulting from elevated global oil prices.

According to the prime minister, market dynamics suggested that domestic fuel prices could have climbed significantly, with petrol projected to reach Rs544 per litre and diesel Rs790 per litre in line with international trends. However, he noted that the government has already absorbed around Rs125 billion over the past three weeks to keep prices stable.

Separately, the prime minister highlighted Pakistan’s diplomatic engagement to de-escalate regional tensions following the conflict involving the United States, Israel, and Iran. He said Pakistan was pursuing sustained dialogue with regional leadership to help restore stability and prevent further disruption to energy markets and regional security.

The government had earlier increased petrol and diesel prices by Rs55 per litre on March 6, citing supply risks after Iran announced the closure of the strategically vital Strait of Hormuz amid escalating hostilities in the Middle East.