Islamabad, March 27, 2026 – Prime Minister Shehbaz Sharif announced that the government is heavily subsidizing fuel prices, revealing that petrol’s actual cost has surged to Rs544 per litre, but is being sold at Rs322 to shield citizens from inflationary pressures.
In a televised address to the nation, the premier said he rejected a summary proposing a Rs95 per litre increase in petrol and a Rs203 hike in diesel prices, opting instead to keep prices unchanged. He noted that diesel should have reached Rs790 per litre, but is currently available at Rs335, with the government absorbing the difference.
“The federal government has decided to bear an additional burden of Rs56 billion this week,” he said, adding that since the onset of the regional crisis, the government has already absorbed a historic Rs125 billion in fuel subsidies.
The prime minister emphasized that while this financial support could have been used for development projects, protecting citizens from rising living costs remains the top priority. He urged the public to adopt fuel conservation measures, advising people to limit unnecessary travel and use resources responsibly.
Highlighting global trends, he said fuel prices have surged worldwide, with many countries facing shortages and long queues at petrol stations. “While governments elsewhere struggle, Pakistan has so far prevented this inflationary storm from fully impacting its people,” he stated.
On the diplomatic front, Shehbaz Sharif said Pakistan is actively engaging with regional leaders, including Iran and Gulf countries, to promote peace and stability. He acknowledged the role of Ishaq Dar and Asim Munir in ongoing diplomatic efforts.
The prime minister concluded by urging national unity, stating that a comprehensive strategy will soon be unveiled to tackle the ongoing economic and regional challenges.