Islamabad, Pakistan — The federal government is actively considering unfreezing petrol and high-speed diesel prices to reflect current global trends, while preparing a targeted subsidy package for motorcycle and rickshaw owners to protect ordinary citizens from the impact of rising fuel costs. Petroleum Secretary Hamed Yaqoob Sheikh announced the initiative during a Senate Standing Committee meeting on March 23, 2026, saying the government is working on relief measures for two- and three-wheelers amid the sharp increase in international oil prices triggered by the US-Israel conflict with Iran. At the same time, jet fuel and kerosene prices have already been raised quietly but significantly, adding pressure on domestic and international airfares. Officials assured that current fuel stocks remain comfortable, with March requirements fully secured and coverage extending into mid-April.
Govt may have to ‘unfreeze’ fuel prices amid global surge https://t.co/rqMxFpYg6G
— Shehzad Younis شہزاد یونس (@shehzadyounis) March 25, 2026
Key Highlights
- Federal government evaluating unfreezing of petrol and diesel prices while planning targeted subsidies for motorcycles and rickshaws.
- Jet fuel price increased by Rs84 per litre (21.65 percent) to Rs472; kerosene rose by Rs71 per litre to Rs429.
- Petrol and diesel prices frozen after initial Rs55 hike, with government absorbing significant subsidy cost.
- Monthly oil import bill could rise to $600 million if conflict escalates further.
- Four-day work week and reduced official vehicle use part of broader austerity measures to conserve fuel.
The decision comes as global oil prices continue to surge due to disruptions in the Strait of Hormuz and retaliatory actions in the Gulf. While the government has so far protected ordinary consumers by freezing regular fuel prices, officials acknowledged that the freeze cannot be sustained indefinitely without affecting the economy. The proposed subsidy for two- and three-wheelers aims to shield daily commuters and small earners who rely heavily on these affordable modes of transport.
The federal government faces a critical decision next week: spend over Rs. 120 billion on a full fuel subsidy for all, or provide targeted relief for motorcycle and rickshaw users at a fraction of the cost.
Local analysts on X are buzzing with speculation as the government… pic.twitter.com/tV48HHqDr1
— Startup Pakistan (@PakStartup) March 22, 2026
Finance Minister Muhammad Aurangzeb, who chairs the petrol monitoring committee, noted that procurement strategies are being diversified to reduce reliance on any single supply corridor. The committee is also closely watching stock levels and market activity to prevent hoarding.
Petroleum Secretary Hamed Yaqoob Sheikh told the Senate panel, “The government is working on a package to provide relief to motorcycle and rickshaw owners.”
By combining targeted relief for the common man with overall austerity in government spending, the government aims to maintain economic stability and ensure that essential services remain accessible. The nation remains confident that through prudent planning and collective responsibility, Pakistan will successfully navigate the current global fuel challenges.
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