Pakistan keeps fuel prices unchanged, increases subsidy to PKR 125 billion

Prime Minister Shehbaz Sharif on Friday announced the government’s decision to keep petroleum prices unchanged, rejecting a proposal to sharply increase fuel costs and instead absorbing an additional financial burden of PKR 56 billion.

In a televised address to the nation, Sharif said a summary had recommended raising petrol prices by PKR 95 per liter and diesel by PKR 203 per liter. However, the proposal was turned down to shield the public from the impact of rising global oil prices.

He said the federal government would bear the cost itself, adding that the cumulative burden over the past three weeks had reached PKR 125 billion.

“Despite extremely limited resources, the government has taken timely and effective measures to prevent the wave of inflation from reaching the public,” he said.

Sharif noted that based on international market rates, petrol prices in Pakistan should have reached PKR 544 per liter, while diesel should have been PKR 790 per liter. However, the government is currently providing petrol at PKR 322 and diesel at PKR 335 per liter.

The prime minister emphasized that austerity was no longer optional but a shared national responsibility. He urged citizens to adopt more economical lifestyles, including reducing unnecessary travel and fuel consumption.

He also said the government had cut PKR 100 billion from development spending and launched cost-saving measures to redirect resources toward reducing economic pressure on citizens.

Sharif stated that Pakistan was simultaneously working on two fronts: protecting national economic interests and engaging in diplomatic efforts to promote peace in the region. He said the country was actively pursuing mediation efforts to prevent conflict and ensure stability among regional and Islamic nations.

Deputy Prime Minister and Foreign Minister Ishaq Dar is closely involved in these diplomatic initiatives, while Chief of Army Staff Asim Munir is also playing a key role, he added.

The prime minister said a comprehensive plan to address the ongoing economic challenges would be announced in the coming days and called for public cooperation.

He expressed confidence that with unity and collective effort, the nation would overcome the current crisis.