Government Keeps Fuel Prices Unchanged Despite Global Drop

In a surprising move, the Government of Pakistan has announced no change in fuel prices for the next fortnight, despite a significant drop in global oil prices. Prime Minister Shehbaz Sharif confirmed that petrol will remain at Rs 254.63 per litre and high-speed diesel (HSD) at Rs 258.64 per litre, holding steady since the last revision on March 29, 2025.

While earlier reports suggested a potential reduction of Rs 8.27 per litre for petrol and Rs 6.96 per litre for diesel, the government has chosen to maintain current rates. The decision is part of a broader fiscal strategy to fund vital national infrastructure projects and meet revenue targets through the Petroleum Levy Ordinance.

Key Projects Being Funded:

• N-25 Highway Dualization (Balochistan): A critical upgrade to enhance connectivity and economic activity in one of Pakistan’s most underserved provinces.
• M-6 and M-9 Motorways (Sindh): Ongoing improvements in the national road network to support trade and mobility.
• Kachhi Canal Phase 2: A transformative irrigation initiative expected to bring prosperity to Balochistan by turning barren lands into fertile fields.

The federal cabinet has also approved amendments to the Petroleum Levy Ordinance, increasing the levy on fuel to support national revenue generation. As of March 16, the levy on petrol and HSD rose from Rs 60 to Rs 70 per litre, a 16.67% increase. Kerosene and light diesel oil also saw sharp hikes in levies.

This move is expected to help the government meet its ambitious target of collecting Rs 1.281 trillion in petroleum levy for the current fiscal year.

Public Reaction & Outlook

While some consumers express disappointment over the missed opportunity for relief, others acknowledge the government’s focus on long-term economic planning. The decision underscores the balancing act between offering short-term price cuts and ensuring long-term national development.

Afsheen Gohar

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