In a late-night televised address on Friday, Prime Minister Shehbaz Sharif announced an immediate reduction of Rs 80 per liter in the price of petrol, a day after the government sharply raised fuel prices in response to the global oil shock triggered by the Iran war.
The decision partially reverses a record hike implemented just 24 hours earlier, as the government moves to shield citizens from the “oil shock” triggered by the ongoing conflict in the Middle East.
Effective from midnight Saturday, the price of petrol will drop from Rs 458.41 to Rs 378 per liter.
Federal Relief and Austerity Measures
The Prime Minister stated that the reduction would be financed by cutting the petroleum levy. He emphasized that despite the global volatility caused by the U.S.-Israel-Iran conflict, the government is prioritizing internal stability.
“The price of petrol had risen to Rs458 per liter. To ease the impact, I have decided to reduce the petroleum levy by Rs80 per liter,” Sharif said. He further announced that all federal cabinet members would forgo their salaries for the next six months as part of an expanded national austerity drive.
Targeted Subsidies and Transport Relief
While the petrol price was reduced, the price of High-Speed Diesel (HSD) remains at Rs 520.35 per liter. To offset these costs, the federal and provincial governments have launched a multi-tier subsidy program:
- Motorcyclists: Registered owners nationwide will receive a subsidy of Rs 100 per litee (capped at 20 liters per month).
- Public Transport: All public transport in Islamabad will be free of cost for the next 30 days. Similarly, Punjab has announced free travel on the Orange Line, Metro Bus, and Green Electric Bus services.
- Freight & Goods: To prevent food inflation, the government will provide monthly support of Rs 70,000 for freight trucks and up to Rs 100,000 for public service buses.
- Agriculture: Small farmers (owning up to 25 acres) will receive Rs 1,500 per acre to cover diesel costs for harvesting and wheat threshing.
Provincial Implementation
Both Sindh and Punjab have mobilized digital registration systems to distribute these funds.
- Sindh: Chief Minister Murad Ali Shah announced a Rs55 billion ($198 million) package, including direct bank transfers of Rs2,000 per month to 6.7 million motorcycle owners. Ownership transfers will be free for 15 days to allow residents to update records and qualify for the aid.
- Punjab: Chief Minister Maryam Nawaz confirmed that the province is overseeing a transparent subsidy for farmers and transporters, urging citizens to utilize public transport to reduce the national fuel burden.
Comparative Fuel Price Trends in Pakistan (Feb 27 – April 4, 2026)
| Date | Petrol Price (PKR) | Diesel Price (PKR) | Periodic Change (%) |
| Feb 27 (Pre-War) | 266.17 | 280.86 | Baseline |
| March 7 | 321.17 | 335.86 | +20.7% / +19.6% |
| April 2 (Peak) | 458.41 | 520.35 | +42.7% / +54.9% |
| April 4 (Current) | 378.41 | 520.35 | -17.4% (Petrol Only) |
| Net Cumulative Change | +42.2% | +85.3% | Total since Feb 27 |
Market Context
The Prime Minister noted that the Strait of Hormuz conflict has severely disrupted global shipping routes, pushing international oil benchmarks to unprecedented levels. He maintained that these relief measures will remain in place for at least one month, with the hope that prices will stabilize as regional tensions de-escalate.