What happened
The federal government raised the price of kerosene by Rs4.66 per litre to Rs433.40 effective 28 March 2026, while holding petrol and diesel prices unchanged despite sharp increases in the international oil market, according to a notification issued by the Petroleum Division, Geo News reported.
Petrol stayed at Rs321.17 per litre and diesel at Rs335.86 per litre. To keep them there, the government will pay oil marketing companies Rs95.59 per litre on petrol and Rs203.88 per litre on diesel under the Petroleum Development Cess, the notification said.
Why it matters
Hours before the announcement, Prime Minister Shehbaz Sharif addressed the nation on the fuel crisis and said he had rejected a summary that would have raised petrol by Rs95 per litre and diesel by Rs203 per litre. “The government will bear the additional cost, estimated at Rs56 billion, to protect consumers,” he said in the televised address.
The decision shields households and transport users from the oil shock tied to the Middle East war at a substantial fiscal cost, and it follows an earlier March decision to reject a Rs45bn fuel price hike. In the speech, Shehbaz also highlighted Pakistan’s diplomatic role in the region, including talks with Iran and Gulf countries, which he said Dar was leading, and credited Chief of Defence Forces Field Marshal Asim Munir.
What is still uncertain
The freeze is not open-ended. Pakistan will keep paying the differential through the Petroleum Development Cess while global prices remain elevated, and the government has said some key economic decisions would follow in the coming days. The State Bank was separately consulting banks on a possible interest-rate increase, with the monetary policy announcement scheduled for 27 April, Dawn reported, citing financial-sector sources. Inflation is expected to rise faster than earlier anticipated because of the war-induced surge in global energy prices, the central bank’s monetary policy committee minutes said.
Sources & reporting notes
This is a synthesis of published reporting, not eyewitness coverage. Sources were reviewed on 2026-03-29.
- Geo News — Kerosene hiked to Rs433.40 per litre, petrol, diesel held steady as PM intervenes28 March 2026 · Carries the Petroleum Division notification, the PDC payments and PM Shehbaz's televised rejection of the Rs95/203 per-litre summary.
- Dawn — War fallout sparks rate hike fears28 March 2026 · Shahid Iqbal's Karachi report on the State Bank's consultations, the 27 April monetary policy date and the MPC minutes.
