Islamabad, March 21, 2026 – Prime Minister Shehbaz Sharif has rejected a massive increase in fuel prices that could have pushed petrol close to Rs400 per litre, deciding instead to keep the rate unchanged at Rs321.17 per litre to provide relief ahead of Eid-ul-Fitr.
The government had received multiple proposals recommending sharp hikes in petroleum prices due to soaring global oil rates amid Middle East tensions. However, the prime minister chose not to transfer the financial burden to the public during the festive season.
In his address, Shehbaz Sharif said proposals included an increase of Rs50 per litre in petrol and Rs74 per litre in diesel, while cumulative suggestions indicated hikes of up to Rs76 per litre for petrol and Rs177 per litre for diesel—levels that could have driven petrol prices near Rs400 per litre.
“My top priority is to protect the common man,” the prime minister stated, emphasizing that the government would absorb the impact of rising international oil prices.
He revealed that the government has already spent around Rs69 billion to prevent cumulative increases of Rs127 per litre in petrol and Rs252 per litre in diesel, ensuring stability in domestic fuel prices.
The premier also noted that funds from the development budget have been diverted to subsidize petroleum products, offering much-needed relief to consumers.
Global crude oil prices have surged to a two-year high due to supply disruptions caused by ongoing geopolitical tensions, putting pressure on economies worldwide.
Despite a recent increase of Rs55 per litre earlier this month, the government has opted to maintain current fuel prices, providing temporary relief to citizens during Eid while closely monitoring global market trends.