Islamabad, Updated At: 11:08 AM Apr 04, 2026 IST
A day after an unprecedented surge in fuel prices sparked widespread backlash, Prime Minister Shehbaz Sharif announced a PKR 80 per litre reduction in the petrol levy, bringing the retail price to PKR 378 per litre.
Sharif, speaking in a midnight address, said the cut would take effect from midnight and petrol would be available at the revised rate at filling stations nationwide. He added the petrol price would remain unchanged for at least one month.
The government had on Thursday raised petrol and high-speed diesel (HSD) prices sharply — a 43% increase for petrol and 55% for HSD — pushing petrol from PKR 321.17 to PKR 458.41 per litre as the levy rose from PKR 105 to PKR 160 per litre. HSD was increased by PKR 184.49 to PKR 520.35 but its levy was abolished, prompting calls for similar relief on petrol.
Sharif blamed the spike on disruptions in the Gulf region and rising global oil prices, saying his administration was trying to shield citizens from inflation through careful savings and prudent use of resources. “We tried to shield you from the storm of inflation,” he said.
As part of austerity measures, he extended a previous decision to withhold federal cabinet members’ salaries: they will now go without pay for six months instead of the earlier two-month measure.
The prime minister announced targeted relief for vulnerable groups: a PKR 100 per litre subsidy for motorcycle users; PKR 70,000–80,000 for goods transport vehicle owners; PKR 100,000 for passenger vehicle owners; and PKR 1,500 per acre for small farmers. He also said Pakistan Railways would not raise economy class fares.
Sharif said the measures would apply in Pakistan‑occupied Kashmir and Gilgit‑Baltistan, and that all necessary resources would be provided. “We will continue our efforts until you are able to return to your daily lives with peace and stability,” he said.
Pakistan has been hit by petroleum supply disruptions as global prices climbed after the Strait of Hormuz was effectively closed and conflict in West Asia escalated. Initially, the government had absorbed increases by providing PKR 129 billion in subsidies and kept prices unchanged for three weeks, before the recent sharp adjustments.
