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PM Shehbaz Orders Strategy to Conserve Fuel, Ensure Supply After Price Hike
After a Rs55 per litre fuel price hike, PM Shehbaz Sharif has directed finance and petroleum ministers to coordinate with provinces to ensure petroleum conservation and uninterrupted supply, while preparing an austerity strategy within 48 hours.
ND
by News Desk
2026-03-07
PM Shehbaz Orders Strategy to Conserve Fuel, Ensure Supply After Price Hike

Prime Minister Shehbaz Sharif on Saturday directed the federal finance and petroleum ministers to visit the provinces and coordinate with provincial governments to develop a comprehensive strategy aimed at conserving petroleum products and ensuring their uninterrupted supply to the public.

The directive comes a day after the government announced a significant increase of Rs55 per litre in petrol and high-speed diesel prices, amid growing global economic pressures and rising oil prices.

According to a statement issued by the Prime Minister’s Office Pakistan, the instructions were given during a meeting chaired by the prime minister to review the country’s economic situation and assess the impact of regional developments on Pakistan’s economy.

During the meeting, officials briefed the prime minister on the evolving global situation and its economic implications for the region.

The prime minister directed that a strategy focused on austerity and energy conservation be prepared in response to the ongoing economic pressures. He instructed officials to present actionable proposals within the next 48 hours.

He emphasised that the proposed strategy should aim to minimise the financial burden on citizens while prioritising public relief measures.

The meeting also reviewed the findings of a committee formed by the prime minister to evaluate the global economic impact of recent regional tensions.

Officials informed the prime minister that the recent increase in petroleum prices had been implemented on the recommendation of the committee, adding that the government had attempted to transfer the minimum possible burden of global price increases to consumers.

Prime Minister Shehbaz also directed the committee members to continue working actively and present practical recommendations to reduce economic pressure on the public as soon as possible.

The premier further ordered strict action against hoarding and artificial shortages of fuel. He directed authorities to immediately shut down petrol pumps or companies found creating artificial shortages, revoke their licences and initiate legal proceedings against them.

Meanwhile, Attaullah Tarar, Pakistan’s information minister, urged citizens not to pay attention to rumours or speculation regarding fuel shortages.

In a post on the social media platform X (Twitter), Tarar recalled that Deputy Prime Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb and Petroleum Minister Ali Pervaiz Malik had addressed the nation in a press conference on Friday night regarding the increase in fuel prices.

He said the government and relevant ministries would continue to provide accurate and verified information to the public.

The information minister also confirmed that the prime minister had given authorities 48 hours to formulate a strategy for austerity in government operations.

He added that the finance and petroleum ministers had been tasked with meeting the chief ministers of all four provinces to discuss measures to prevent hoarding and ensure the smooth supply of petroleum products.

Tarar stressed that there would be no leniency for those found exploiting the public, warning that the licences of violators would be cancelled.

Separately, Adviser to the Finance Minister Khurram Schehzad explained the process used to determine fuel prices in Pakistan.

In a post on X, Schehzad said that fuel prices are calculated based on the average Platts benchmark prices of petrol and diesel during the pricing period, along with exchange rate adjustments.

He clarified that prices are not based on the cost of a specific shipment purchased weeks earlier.

Schehzad added that oil companies are required by the Oil and Gas Regulatory Authority (Ogra) to maintain around 20 days of mandatory fuel stock, a requirement that has recently been increased due to regional tensions.

He explained that companies continuously sell fuel while simultaneously purchasing new cargo at prevailing international prices to replenish inventory.

“As a result, when fuel is sold today, it must be replaced with fuel purchased at current international prices to maintain required reserves,” he said.

Schehzad also noted that what some people describe as “inventory gains” often disappear because companies must replenish their stocks with more expensive fuel, and in many cases they incur losses when global prices fall.
Tagged:

ShehbazSharif

PakistanEconomy

PetrolPriceHike

FuelCrisis
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