The federal government has decided to keep petrol prices unchanged, with Prime Minister Shehbaz Sharif announcing that the state will bear an additional burden of Rs56 billion to shield consumers.

In a televised address to the nation on Friday, the prime minister said he had rejected a proposal to significantly increase fuel prices.

He revealed that petrol could have surged to Rs544 per litre but is being maintained at Rs322, while diesel, estimated to reach Rs790 per litre, will continue to be provided at Rs335.

PM Shehbaz said he was addressing the nation at a time when Pakistan was navigating challenges on two fronts — safeguarding national interests and actively pursuing peace efforts in the region.

He noted that Pakistan was engaged in diplomatic outreach, including contacts with Iran and Gulf countries, to help de-escalate tensions and prevent a wider conflict in the Muslim world.

Deputy Prime Minister Ishaq Dar is leading these efforts, while military leadership is also playing a key role in the reconciliation process.

The premier described the global situation as “extraordinary and difficult,” pointing out that even major economies were facing severe financial strain.

In such conditions, he said, the impact on Pakistan could have been far more severe.

To manage the crisis, PM Shehbaz said the government had already taken pre-emptive measures, including a Rs100 billion cut in development spending and austerity steps to conserve resources.

He disclosed that a fresh summary had proposed an increase of Rs95 per litre for petrol and Rs203 per litre for diesel, which he rejected to avoid further burdening the public.

“Every litre of fuel reflects the government’s sense of responsibility and economic discipline,” the prime minister said, adding that relief measures were aimed at protecting citizens from global price shocks.

Officials say the decision underscores the government’s attempt to balance fiscal pressures with public relief, as Pakistan continues to navigate economic challenges and regional uncertainties.