Prime Minister Shehbaz Sharif addresses the federal cabinet special in Islamabad, Pakistan on March 4, 2025. Photo: PID/File
Prime Minister Shehbaz Sharif on Saturday chaired a meeting to review Pakistan’s economic situation amid ongoing global tensions. Officials briefed him on the impact of international events on the country’s economy.
According to a statement issued by the Prime Minister’s Office, the Prime Minister led the formulation of a policy focused on growth, austerity and savings, with practical recommendations to be presented within 48 hours. He stressed that public aid must remain a top priority while minimizing the burden on citizens.
Regarding oil supply, Prime Minister Shehbaz ordered strict measures against hoarding or artificial shortages, including revocation of licenses and legal proceedings against offending companies. He also directed the Finance and Petroleum Ministers to coordinate with provincial governments to ensure uninterrupted supply and implement conservation measures.
The recent increase in prices of petroleum products, officials said, was based on the committee’s recommendations and was aimed at passing on minimal impact to consumers despite global price increases.
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The government on Friday sharply increased petrol and high-speed diesel prices by Rs 55 per litre, marking the first in a series of expected adjustments as the ongoing regional conflict disrupts global oil supply chains.
Oil Minister Ali Pervaiz Malik announced the revised rates with immediate effect following approval from Prime Minister Shehbaz Sharif. The new price of petrol has been fixed at Rs 321 per litre, while high-speed diesel has been increased to Rs 336 per litre.
The government also revised the petroleum tax structure, increasing the tax on petrol to a record Rs 105.4 per litre, while reducing it to Rs 55 per liter on diesel, in an effort to ease the burden on the transport and agriculture sectors that rely heavily on diesel.
Also, the price of kerosene increased by Rs 130 per liter to Rs 319, while light diesel increased by Rs 68 to Rs 235 per liter, reflecting the rise in international fuel prices.
Global oil markets have seen strong volatility amid rising tensions in the Middle East, with crude oil prices hitting their highest levels in two years. According to Malik, the average price of gasoline at Platts rose from $78 to about $107 per barrel in six days, while diesel rose from $88 to nearly $150 per barrel during the same period.
The government said the price adjustments were necessary to ensure continued availability of fuel in the country amid supply disruptions and rising import costs. Authorities are also monitoring global markets and reviewing oil prices weekly as the situation evolves.
