Prime Minister Shehbaz Sharif addresses the special meeting of the federal cabinet 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 developments on the country’s economy.
According to a statement issued by the PM’s office, the prime minister directed the formulation of a policy focused on growth, savings and austerity, with practical recommendations to be presented within 48 hours. He emphasized that public relief 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 license revocation and legal action 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 hike in petroleum product prices, officials said, was based on the committee’s recommendations and aimed at passing on the minimum impact to consumers despite global price hikes.
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The government on Friday sharply hiked petrol and high-speed diesel prices by Rs55 per litre, marking the first in a series of expected adjustments as the ongoing regional conflict disrupts global oil supply chains.
Petroleum Minister Ali Pervaiz Malik announced the revised rates with immediate effect after the approval of Prime Minister Shehbaz Sharif. The new price of petrol was set at Rs 321 per litre, while high-speed diesel rose to Rs 336 per litre.
The government also revised the oil tax structure, increasing tax on petrol to a record Rs105.4 per liter while reducing it to Rs55 per liter on diesel in a bid to ease the burden on the transport and agriculture sectors, which are heavily dependent on diesel.
Additionally, the price of kerosene oil was increased by Rs130 per liter to Rs319, while light diesel increased by Rs68 to Rs235 per liter, reflecting the rise in international fuel prices.
Global oil markets have seen high volatility amid escalating tensions in the Middle East, with crude oil prices hitting their highest levels in two years. According to Malik, the average Platts price of gasoline rose from $78 to about $107 per gallon. barrel within six days, while diesel rose from $88 to nearly $150 a barrel. barrel in the same period.
The government said the price adjustments were necessary to ensure continued fuel availability in the country amid supply disruptions and rising import costs. Authorities are also monitoring global markets and reviewing oil prices on a weekly basis as the situation develops.
