Pakistan keeps fuel prices unchanged, increases subsidy to PKR 125 billion

Pakistan has decided to keep the price of petrol and diesel unchanged, despite recommendations for a significant increase, in a move aimed at providing relief to consumers amid ongoing Middle East conflict. In a televised address on Friday, Prime Minister Shahbaz Sharif said he rejected a proposal to raise the petrol price by PKR 93 per liter and high-speed diesel by PKR 203. The price of petrol will remain unchanged at PKR 321.17 per liter and that of diesel at PKR 335.86 per liter for the next week. However, the decision comes at a substantial financial cost. The prime minister added that the government, in order to keep the prices unchanged, will provide a subsidy of PKR 56 billion during the next week. This will be in addition to the PKR 69 billion subsidy already provided on petroleum products, resulting in a burden of PKR 125 billion on the national exchequer.