PM Shehbaz Slashes Petrol Levy by Rs80 — New Price Rs378 Per Litre Effective April 4, 2026
Just 24 hours after announcing the largest fuel price hike in Pakistan’s history, Prime Minister Shehbaz Sharif addressed the nation on Friday night and announced an immediate reduction of Rs80 per litre in the petroleum levy on petrol — bringing the end-consumer price from Rs458.41 down to Rs378 per litre, effective from midnight Saturday (April 5, 2026). The reversal, valid for at least one month, comes alongside a comprehensive relief package covering motorcyclists, truck operators, small farmers, and railway passengers.
The Announcement
In a nationally televised address from Islamabad, PM Shehbaz Sharif acknowledged the hardship caused by Thursday’s fuel price shock and moved swiftly to provide relief through a direct cut in the petroleum levy. The prime minister said the new price would take effect at 12:00am Saturday, April 5 and would remain in force for at least one month, applicable nationwide including Gilgit-Baltistan and Azad Kashmir.
“I am announcing an immediate reduction of Rs80 per litre in the petrol levy. The new price of Rs378 per litre will take effect from midnight, with petrol available at the revised rate at pumps across the country. Through careful savings and prudent use of resources, we tried to shield you from the storm of inflation.” — Prime Minister Shehbaz Sharif, Address to the Nation, April 4, 2026
The PM described the situation as a “harsh reality” — noting that the surge in global oil prices driven by the US-Israel war on Iran had placed immense pressure on Pakistan’s import-dependent economy. He expressed hope for an early end to the Middle East conflict, while also revealing that Deputy PM Ishaq Dar is engaged in diplomatic initiatives linked to ceasefire discussions.
Petrol Price — Before, During and After
| Stage | Price | Change | Effective |
|---|---|---|---|
| Before March crisis | Rs. 266.17/L | — | March 1, 2026 |
| March 7 emergency hike | Rs. 321.17/L | ▲ +Rs. 55 | March 7, 2026 |
| April 3 historic hike | Rs. 458.41/L | ▲ +Rs. 137.24 | April 4, 2026 |
| PM’s levy reversal | Rs. 378/L | ▼ -Rs. 80.41 | April 5, 2026 |
Complete Relief Package — April 4, 2026
Alongside the petrol levy cut, PM Shehbaz announced a broad relief package for the sectors most affected by the fuel price crisis:
✅ Cabinet salary sacrifice: PM Shehbaz extended the cabinet salary forfeiture from two months to six months, redirecting those savings to the public relief fund.
✅ GB & AJK included: All announced measures will be extended to Gilgit-Baltistan and Azad Jammu & Kashmir, with the federal government providing the necessary resources.
Context: Why Did the Hike Happen at All?
Thursday’s Rs. 137.24/L petrol hike — announced by Petroleum Minister Ali Pervaiz Malik and Finance Minister Muhammad Aurangzeb — was driven by extraordinary global circumstances that Pakistan had limited ability to control:
| Factor | Impact |
|---|---|
| Strait of Hormuz disruption by Iran | Global crude crossed $250/barrel in Dubai/Oman markets |
| Pakistan’s 80% import dependency | Direct exposure to full price surge with no buffer |
| IMF programme obligations | Required passing on market costs to consumers |
| Rs. 129bn already absorbed since March 1 | Further subsidisation deemed fiscally unsustainable |
| Petroleum levy raised to Rs. 161/L on petrol | Revenue measure contributing to the high pump price |
The PM’s Rs80 levy cut directly reverses part of that levy increase — reducing it from Rs. 161/L back towards Rs. 81/L — accepting a lower revenue collection in exchange for immediate public relief. The government is banking on the one-month window to allow global oil markets to stabilise as diplomatic de-escalation efforts continue.
48-Hour Timeline — Pakistan’s Biggest Fuel Rollercoaster
What Does Rs378/L Mean for You?
| Vehicle / Use | Old Fill Cost (Rs458.41) | New Fill Cost (Rs378) | Saving |
|---|---|---|---|
| Motorcycle (5L tank) | Rs. 2,292 | Rs. 1,890 | -Rs. 402 |
| Small car (35L tank) | Rs. 16,044 | Rs. 13,230 | -Rs. 2,814 |
| Sedan (45L tank) | Rs. 20,628 | Rs. 17,010 | -Rs. 3,618 |
| SUV (65L tank) | Rs. 29,796 | Rs. 24,570 | -Rs. 5,226 |
What Happens Next?
The next scheduled OGRA price revision is around April 15–16, 2026. The Rs. 378/L petrol price is guaranteed for at least one month, meaning it should hold through the mid-April revision cycle. Whether it reduces further or rises again depends on:
- Global crude prices — currently near $250/barrel in Dubai/Oman benchmark; a reduction in the Middle East conflict could quickly ease this
- Strait of Hormuz situation — any reopening of the waterway would significantly reduce import costs
- IMF review — Pakistan’s next IMF programme review will assess the fiscal impact of the levy reduction
- Diplomatic progress — Deputy PM Ishaq Dar’s engagement in ceasefire discussions may yield results
