Petrol and Diesel Prices Hold Steady in Pakistan as Government Focuses on Infrastructure Development

Despite expectations of a fuel price cut, the Government of Pakistan has decided to keep petrol and diesel prices unchanged for the next two weeks. This decision was officially announced by Prime Minister Shehbaz Sharif, confirming that petrol will remain at Rs 254.63/litre and high-speed diesel at Rs 258.64/litre.

The announcement comes amid a notable decline in global oil prices. Previous media reports hinted at possible price reductions—up to Rs 8.27 per litre for petrol and Rs 6.96 for diesel. However, the government opted to maintain current rates, citing the need to redirect resources toward national development.

Why Fuel Prices Remain Unchanged

The government plans to use the potential fuel savings to fund critical infrastructure upgrades, with a strong focus on Balochistan and Sindh. These include:

Dualization of the N-25 Highway in Balochistan, improving trade routes and local connectivity.
Continued work on the M-6 and M-9 Motorways in Sindh, boosting transportation infrastructure.
Expansion of the Kachhi Canal Project (Phase 2), which aims to irrigate large areas of Balochistan, supporting agriculture and rural development.

Revenue Boost Through Petroleum Levy

To meet its fiscal targets, the federal cabinet also approved amendments to the Petroleum Levy Ordinance. From March 16, the petroleum levy on petrol and diesel was raised from Rs 60 to Rs 70 per litre—a sharp 16.67% increase. Kerosene oil and light diesel oil also saw significant hikes in their levy rates.

The increased levy is expected to help the government achieve its ambitious collection target of Rs 1.281 trillion in petroleum revenue for the ongoing fiscal year.

Final Thoughts

While consumers were hoping for relief at the pump, the government’s move prioritizes long-term infrastructure growth and financial stability. The unchanged prices might be tough in the short term, but they support critical development goals across the country.