Islamabad (March 22, 2026): In a significant relief measure for citizens amid rising inflationary pressures, Prime Minister Shehbaz Sharif has announced that petrol and diesel prices will remain unchanged for another week.
According to an official statement issued late Friday night, the federal government has decided to maintain the current prices of petroleum products despite strong recommendations for a substantial increase.
Current Fuel Prices in Pakistan
| Fuel Type | Price (Rs. per litre) |
| Petrol (Motor Spirit) | 321.17 |
| High-Speed Diesel (HSD) | 335.86 |
The revised decision took effect from Saturday, March 21, 2026, offering temporary stability in fuel costs across the country.
Government Rejects Major Price Hike Proposal
Sources within the Petroleum Division revealed that authorities had proposed a sharp increase in fuel prices:
- Petrol: Proposed increase of Rs. 50 per litre
- Diesel: Proposed increase of Rs. 74 per litre
However, Prime Minister Shehbaz Sharif rejected the summary, opting instead to provide relief to the public.
Rs. 45 Billion Subsidy to Stabilize Prices
To maintain current fuel rates, the federal government will bear an estimated Rs. 45 billion subsidy. Officials say the decision reflects the government’s intent to cushion citizens from further financial burden during ongoing economic challenges.
Background: Recent Fuel Price Trends
The latest move comes just weeks after a significant increase in fuel prices. Approximately a fortnight ago, petrol and diesel prices were raised by Rs. 55 per litre each, largely due to global market volatility linked to the Gulf region crisis.
Over the past four fuel price reviews, the government has increased petroleum prices in two instances, indicating a fluctuating policy approach amid international oil price uncertainty.
Public Relief Amid Inflation Concerns
The decision to freeze fuel prices is likely to provide short-term relief to consumers already grappling with high transportation and commodity costs. Analysts believe this move may also help stabilize inflation expectations in the near term.
However, experts caution that maintaining subsidies could add pressure on the national exchequer if global oil prices continue to rise.