Pakistan Holds Steady on Fuel Prices Amid Global Volatility

Islamabad – In a move aimed at easing economic pressure on citizens, Pakistani Prime Minister Shehbaz Sharif has decided against increasing petroleum product prices despite a recent surge in the global oil market. The decision, announced Friday, March 13, 2026, seeks to provide relief to consumers facing rising living costs.

Decision Driven by Economic Concerns

According to a statement released by the Prime Minister’s Office (PMO), Sharif stated the government’s commitment to minimizing the burden on the “common man.” He emphasized that this decision aligns with his pledge to provide maximum possible relief to the population. “No price hike is being made in order to reduce the burden on the common man,” the prime minister was quoted as saying according to the PMO.

Global Economic Pressures and Regional Tensions

The Prime Minister acknowledged the current pressures on the global economy stemming from regional tensions, which are expected to significantly impact Pakistan’s economic stability. However, he expressed confidence in the government’s ability to navigate these challenges through timely policy-making, austerity measures, and financial discipline. He as well welcomed the support from provincial governments in implementing these austerity measures.

Ensuring Supply and Price Control

Sharif highlighted the efforts of Pakistan’s diplomatic and economic teams in securing adequate crude oil supplies to meet the country’s needs. He assured the public that both federal and provincial governments are collaborating to ensure that fuel is sold at government-regulated prices. “The federal and provincial governments are working together to ensure that no one is charged more than the price set by the government,” he said as reported by Dawn.

Recent Price Increases and Austerity Measures

This decision comes just a week after the government implemented a price increase of Rs55 per litre for both petrol and diesel, responding to disruptions in oil supply linked to escalating tensions in the Middle East. Following this increase, the prices rose to Rs321.17 per litre for petrol and Rs335.86 per litre for diesel. The government simultaneously announced a series of austerity measures to mitigate the economic impact of the situation.

Middle East Conflict and Oil Market Fluctuations

The international oil market has experienced volatility due to the conflict in the Middle East, including strikes involving Iran, Israel, and the United States. Concerns over potential disruptions to oil supply, particularly through the Strait of Hormuz, initially drove prices higher. However, prices saw a slight dip on Friday, March 13, 2026, following the passage of an Indian tanker through the Strait of Hormuz and US efforts to address supply concerns. Despite this dip, Brent futures are still on track for weekly gains, trading at $99.83 a barrel according to BR Web Desk.

Joint Decision with Military Leadership

Highly placed sources revealed that the decision to hold fuel prices steady was made jointly by Prime Minister Shehbaz and the military leadership following the previous Rs55 per litre increase. The government intends to utilize block allocations for emergencies to absorb any further price hikes, recognizing that the current fuel supply disruptions pose a significant challenge to the nation as reported by Dawn.