PM Shehbaz reviews economic situation, directs petroleum supply measures

Prime Minister Shehbaz Sharif on Saturday chaired a meeting to review Pakistan’s economic situation amid ongoing global tensions. Officials briefed him on the impact of international developments on the country’s economy.

According to a statement issued by the PM Office, the prime minister directed the formulation of a policy focused on growth, austerity, and savings, with practical recommendations to be presented within 48 hours. He emphasised that public relief should remain a top priority while minimising the burden on citizens.

Addressing petroleum supply, PM Shehbaz ordered strict action against hoarding or artificial shortages, including license revocation and legal proceedings against offending companies. He also instructed the Finance and Petroleum ministers to coordinate with provincial governments to ensure uninterrupted supply and implement conservation measures.

The recent increase in petroleum product prices, officials said, was based on the committee’s recommendations and aimed at passing the minimum impact to consumers despite global price surges.

Read: Petrol pumps may shut within days as dealers warn of supply cuts

The government on Friday sharply increased petrol and high-speed diesel prices by Rs55 per litre, marking the first in a series of expected adjustments as the ongoing regional conflict disrupts global oil supply chains.

Petroleum Minister Ali Pervaiz Malik announced the revised rates with immediate effect following approval from PM Shehbaz Sharif. The new price of petrol was set at Rs321 per litre, while high-speed diesel rose to Rs336 per litre.

The government also revised the petroleum levy structure, increasing the levy on petrol to a record Rs105.4 per litre, while reducing it to Rs55 per litre on diesel in an effort to ease the burden on the transport and agriculture sectors that rely heavily on diesel.

In addition, the price of kerosene oil was increased by Rs130 per litre to Rs319, while light diesel oil rose by Rs68 to Rs235 per litre, reflecting the surge in international fuel prices.

The global oil markets have experienced sharp volatility amid escalating tensions in the Middle East, with crude prices reaching their highest levels in two years. According to Malik, the average Platts price of petrol increased from $78 to around $107 per barrel within six days, while diesel surged from $88 to nearly $150 per barrel during the same period.

The government said the price adjustments were necessary to ensure continued fuel availability in the country amid supply disruptions and rising import costs. Authorities are also monitoring global markets and reviewing petroleum pricing on a weekly basis as the situation evolves.