ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday said his government had decided against raising fuel prices ahead of Eid Al-Fitr, opting instead to absorb the financial impact to shield consumers from further cost pressures.
The decision comes weeks after Pakistan increased petrol and diesel prices by nearly Rs55 ($0.20) per liter, following a surge in global oil prices driven by the ongoing conflict involving Iran, the United States and Israel.
The earlier increase pushed petrol prices above Rs320 ($1.14) per liter and diesel close to Rs336 ($1.20), adding to inflationary pressures by raising transport, food and retail costs during the peak Eid season.
“I was advised to increase the fuel price by Rs76 for petrol and Rs137 for diesel,” Sharif said in a televised address.
“But under the pretext of responsibility, especially as Eid approaches, I have rejected the suggestion of increasing the fuel price by Rs76 for petrol and Rs137 for diesel.”
Sharif said the government would instead absorb the financial burden created by holding back the increase.
“The government itself will bear the burden of Rs24 billion generated by this decision,” he said.
He added that the administration had made adjustments to development spending to offset the cost, while attempting to ease pressure on households already affected by inflation.
Sharif said the decision reflected the need for shared sacrifice during difficult economic conditions.
“We can overcome this crisis with the spirit of sacrifice,” he said.
Pakistan’s inflation has eased to around 6–7 percent in recent months after peaking at 38 percent in 2023, but fuel costs continue to drive broader price increases across the economy.
