‘Relief after shock hike’: PM cuts petrol levy by Rs80, price down to Rs378 per litre

• Premier Shehbaz announces relief hours after Petrol price hiked 43pc, diesel 55pc amid global oil shock

• Says tried to shield public from inflation for weeks, describing the situation as a ‘harsh reality’

• Stresses Gulf conflict drives unprecedented fuel crisis, saying govt rolls out subsidies for bikers, transporters, farmers

• Says cabinet to forgo salaries for six months under austerity push, with rail fares frozen, nationwide relief package unveiled

• Vows continued support, saying national unity and coordination were essential to tackle the crisis

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday announced an immediate Rs80 per litre reduction in the petroleum levy on petrol, bringing its price down to Rs378 per litre for end consumers, just a day after an unprecedented hike of 43 per cent in petrol and 55 per cent in high-speed diesel (HSD) prices, state media reported.

In a late-night televised address to the nation, the prime minister said the revised petrol price would take effect at 12am on Saturday across the country, offering partial relief to consumers amid mounting public concern over soaring fuel costs.

"پیٹرول کی مد میں 80 روپے فی لیٹر فی الفور کمی کا اعلان کر رہا ہوں۔ پیٹرول کی قیمت 458 روپے فی لیٹر سے کم کر کے رات 12 بجے سے 378 روپی فی لیٹر کر دی گئی ہے۔ وفاقی حکومت اور چاروں صوبائی حکومتیں مل کر آپ کی مشکلات میں کمی لانے کے لیے ہر وہ قدم اٹھائیں گے جو وقت کی ضرورت ہے۔ پیٹرول… pic.twitter.com/KZR9sJG3rx

— Government of Pakistan (@GovtofPakistan) April 3, 2026

The announcement came against the backdrop of a sharp spike in global oil prices triggered by the ongoing conflict in the Gulf region, with the US-Israel war on Iran sending shockwaves through international energy markets and significantly impacting Pakistan’s economy.

A day earlier, the government had announced a massive increase in fuel prices to cushion the impact of global oil shocks. Under the revised rates, the ex-depot price of petrol was raised by Rs137.23 per litre (42.7 per cent) to Rs458.41 from Rs321.17, while HSD prices surged by Rs184.49 per litre (55 per cent) to Rs520.35 from Rs335.86, with immediate effect.

The price of kerosene was also increased by Rs34.08 per litre to Rs457.80, further intensifying pressure on household budgets.

براہِ راست : وزیرِ اعظم محمد شہباز شریف کا قوم سے خطاب https://t.co/JCT4DSfcoT

— Government of Pakistan (@GovtofPakistan) April 3, 2026

Describing the situation as a “harsh reality,” Prime Minister Shehbaz said the surge in fuel prices was dimming the kitchen fires of the poor, creating immense challenges for farmers, and placing an additional burden on ordinary citizens already grappling with inflation.

He said the government had made every possible effort to utilise limited national resources to promote public welfare and mitigate the hardships faced by the people.

“Through careful savings and prudent use of resources, we tried to shield you from the storm of inflation,” he said, acknowledging the strain on citizens.

The premier noted that international oil prices had witnessed a massive surge in recent weeks, while inflationary pressures were being felt even in the world’s strongest economies, adding that Pakistan was no exception and was being severely affected by the global trend.

“Over the past three weeks, I did not consider it appropriate to pass on the daily increase in oil prices to the public, as I am fully aware of the challenges faced by the common man in making ends meet,” he said.

He assured that the federal government, in coordination with all four provincial governments, would continue efforts to ease the burden on citizens during what he termed a “critical time.”

Highlighting austerity measures, the prime minister said it had earlier been decided that federal cabinet members would forgo their salaries for two months as part of efforts to manage the fuel crisis. However, he announced that the period had now been extended to six months.

He acknowledged that the decision had been taken in haste without prior consultation with cabinet members, but stressed that it reflected the government’s commitment to sharing the burden of economic hardship.

The prime minister began his address by outlining the broader implications of the ongoing Middle East conflict, noting that the war had caused oil prices to skyrocket across the region, with ripple effects being felt globally.

“In these circumstances, the poor, the common man, and farmers are facing serious difficulties,” he said, reiterating that the government was striving to use limited national resources to provide maximum relief.

Reaffirming that international oil prices had surged sharply, he said even major economies were struggling to cope with rising inflation, adding, “Certainly, Pakistan is also badly affected by it.”

To cushion the impact of the fuel price hike, the prime minister announced a series of targeted relief measures.

He said a subsidy of Rs100 per litre would be provided for motorcycle users, a segment heavily reliant on petrol for daily commuting.

To support the transport sector and prevent a surge in fares and essential commodity prices, the government announced a one-month subsidy for goods transport. Under this initiative, small trucks would receive Rs70,000, large trucks Rs80,000, and public transport buses Rs100,000.

“For small farmers, financial assistance of Rs1,500 per acre has been announced,” the prime minister said, adding that the measure aimed to ease the burden on the agricultural sector amid rising input costs.

He also announced that Pakistan Railways fares for economy class passengers would not be increased, despite rising fuel costs, and said clear directives had been issued to the Ministry of Railways in this regard.

The prime minister said that all announced relief measures would also be extended to Gilgit-Baltistan and Azad Jammu and Kashmir, with the federal government providing the necessary resources.

He expressed gratitude to the chief ministers of all provinces for committing their resources to support the relief efforts, emphasizing that national unity and coordination were essential to tackle the crisis.

“Such a major challenge can only be tackled through national unity, cohesion and consensus,” he said.

Assuring the nation of continued support, the prime minister said the government would not rest until normalcy was restored.

“We will continue our efforts until you are able to return to your daily lives with peace and stability, and for this, all available resources will be utilised,” he said.

Announcing the key relief measure, he reiterated that the petrol price, which had been raised to Rs458 per litre a day earlier, would now be reduced through a cut in the petroleum levy.

“I am announcing an immediate reduction of Rs80 per litre in the petrol levy,” he said, adding that the revised price of Rs378 per litre would take effect from midnight and be reflected at fuel stations across the country.

He added that the reduction would remain in place for at least one month and would apply nationwide.

The prime minister concluded by reiterating that his government, in coordination with provincial administrations, would continue to take every possible step to ease the burden on citizens during this challenging period.

“By the grace of Allah, we will take every necessary step required at this critical juncture,” he said.

He also confirmed that, in order to provide further relief to the public, the salaries of federal cabinet members — earlier pledged to be deposited into the national exchequer for two months — would now be contributed for a period of six months.