Prime Minister Shehbaz Sharif said on Friday that he had rejected a proposal to increase petrol and diesel prices.
The prime minister announced this during an address to the nation, delivered on the eve of Eid ul Fitr.
The statement comes as the federal government was scheduled to review the fuel prices on March 20.
On March 13, the government had maintained the petroleum prices despite surge in global oil rates.
Addressing the nation today, PM Shehbaz extended Eid greetings to the nation and highlighted the economic challenges arising from the ongoing global situation.
“I extend heartfelt Eidul Fitr greetings to everyone,” the prime minister said, adding that the festival calls for national unity and collective responsibility.
Referring to the global situation, he said: “Today, the world is facing an extraordinary test. [Mideast] conflict has shaken the global economy as well as peace and stability.
The premier pointed out that attacks on energy installations in brotherly countries have worsened the crisis. “There is a fear that this crisis may intensify further,” he said.
Highlighting the economic impact, the prime minister said oil prices in the global market have surged sharply. “Oil, which was priced at $72 per barrel just weeks ago, has now reached $158 per barrel,” he stated.
The prime minister warned that the situation could lead to rising inflation.
“On March 13, petrol was proposed to rise by Rs50 per litre and diesel by Rs74 per litre. I had decided that the government will bear the additional burden to protect the public,” he announced.
He further said: “We must all embrace balance, austerity, and wisdom. The elite also have a responsibility to play their part.”
The prime minister further said that another increase in oil prices had been observed in the week starting today, after which he was advised again to raise petrol by Rs76 per litre and diesel by Rs177 per litre, but he rejected the summary.
“So, the federal government will bear the additional burden of Rs45bn once again,” PM added.
He said the federal govt had spent Rs69bn from its savings and development budgets over the past two weeks to prevent petrol prices from rising by Rs127 per litre and diesel by Rs252 per litre.
