Islamabad, March 7, 2026: Prime Minister Shehbaz Sharif on Saturday directed the finance and petroleum ministers to visit the provinces and formulate a coordinated strategy with provincial governments to ensure conservation of petroleum products and their uninterrupted supply to the public.
The directive came a day after the government announced a Rs55 per litre increase in petrol and high-speed diesel prices, amid rising global oil prices and escalating regional tensions.
According to a statement issued by the Prime Minister’s Office, the premier chaired a meeting to review the country’s economic situation, during which officials briefed him on the current global developments and their economic impact on the region.
The prime minister instructed authorities to prepare a strategy focused on austerity and savings in light of the global economic pressure resulting from regional tensions. He asked the relevant ministries to present actionable proposals within 48 hours.
Sharif stressed that the proposed measures should aim to minimise the burden on the public while prioritising relief for citizens.
During the meeting, the prime minister was also briefed by a committee formed to assess the economic impact of recent regional developments. Officials informed him that the increase in petroleum prices was made on the committee’s recommendation and that the minimum possible burden of the global price surge had been passed on to consumers.
Sharif directed the committee to continue working actively and submit practical suggestions to reduce the financial pressure on citizens at the earliest.
He also ordered strict action against any petrol pump or company involved in creating artificial shortages or hoarding, directing authorities to immediately close such outlets, revoke their licences and initiate legal proceedings.
Meanwhile, Information Minister Attaullah Tarar urged the public not to pay attention to speculation or rumours regarding fuel supply.
In a statement on the social media platform X, Tarar recalled that Deputy Prime Minister Mohammad Ishaq Dar, Finance Minister Muhammad Aurangzeb and Petroleum Minister Ali Pervaiz Malik had already addressed the media regarding the price hike, explaining that the increase was linked to global market developments.
Tarar added that the prime minister had tasked the finance and petroleum ministers to meet the chief ministers of all four provinces to coordinate measures against hoarding and ensure their effective implementation.
“The prime minister has directed that there will be no leniency for those exploiting the public, and licences of violators will be cancelled,” Tarar said.
Separately, Adviser to the Finance Minister Khurram Schehzad explained the process of determining fuel prices in a post on X.
He said petroleum prices in Pakistan are calculated using the average Platts benchmark prices of petrol and diesel during the pricing period, along with exchange rate adjustments, rather than the cost of a particular shipment purchased earlier.
Schehzad added that oil companies are legally required by the Oil and Gas Regulatory Authority (OGRA) to maintain around 20 days of mandatory fuel stock, which has recently been increased due to regional tensions.
“This means companies continuously sell fuel while simultaneously purchasing new cargo at prevailing international prices to replenish their inventories,” he said.
He explained that when international prices rise, the inventory must be replaced with more expensive fuel, which eliminates any perceived “inventory gain.” Conversely, when global prices fall, companies often suffer inventory losses as they are forced to sell fuel purchased at higher prices at lower regulated rates.
The government has said it will continue to provide verified updates on the situation while working on measures to reduce the economic impact on the public.
