Pakistan's Cabinet Takes Salary Cut Amid Rising Fuel Prices

In a bold move to quell public anger over soaring fuel prices, Pakistan's federal cabinet has agreed to forgo their salaries for six months. Prime Minister Shehbaz Sharif announced a significant reduction in petrol prices, cutting the levy by PKR 80 per litre. This decision comes after a dramatic price hike that pushed petrol prices close to PKR 500, leading to widespread protests. The government is also implementing various relief measures for vulnerable groups, including subsidies for transport vehicles and small farmers. As global oil prices continue to rise due to geopolitical tensions, the government is striving to manage the economic impact on its citizens.

By Narendra Chaudhary Apr 4, 2026, 11:16 IST

Government's Response to Fuel Price Surge

In an effort to address public discontent over escalating fuel prices, the federal cabinet of Pakistan has decided to forgo their salaries for a period of six months. This announcement was made by Prime Minister Shehbaz Sharif, who aimed to mitigate the backlash following a significant increase in fuel costs. During a brief address late Friday night, Sharif revealed a reduction of PKR 80 in petrol prices, marking a notable reversal after a price hike that had sparked widespread protests across the nation, influenced by the ongoing conflict in Iran.

The government has opted to lower the petrol levy by PKR 80 per litre, bringing the price for consumers down to PKR 378 per litre, as stated in the Prime Minister's announcement. He also confirmed that all members of the federal cabinet would not receive salaries for the next six months as part of the government's austerity measures.

Recent Fuel Price Increases

Petrol Prices Nearing PKR 500

On April 2, the government implemented an unprecedented increase of 43% in petrol prices and 55% for high-speed diesel (HSD). The petrol price surged from PKR 321.17 to PKR 458.41 per litre, coinciding with a rise in government levies from PKR 105 to PKR 160 per litre. The HSD price also saw a significant jump, increasing by PKR 184.49 per litre, from PKR 335.86 to PKR 520.35, although the levy on HSD was removed, leading to calls for similar action on petrol prices.

In his announcement, Sharif stated that the new petrol price of PKR 378 per litre would be effective from midnight, with the revised rates available at petrol stations nationwide. He assured that this price would remain stable for at least a month, attributing the price hikes to the geopolitical situation in the Gulf region while emphasizing the government's commitment to controlling prices.

Austerity Measures and Relief Initiatives

Cabinet Ministers' Salary Suspension

Initially, it was planned for federal cabinet members to go without salaries for two months as part of the government's austerity strategy to tackle the fuel crisis. However, this period has now been extended to six months. Sharif expressed that he refrained from passing the daily oil price increases onto the public, acknowledging the financial struggles faced by ordinary citizens.

Additionally, the Prime Minister introduced relief measures for vulnerable groups, including a subsidy of PKR 100 per litre for motorcycle users, financial assistance ranging from PKR 70,000 to 80,000 for goods transport vehicles, and PKR 100,000 for passenger vehicles. Small farmers are also set to receive PKR 1,500 per acre in support. Furthermore, it was decided that fares for economy class passengers on Pakistan Railways would not be raised.

Pakistan is grappling with severe disruptions in petroleum supplies, exacerbated by rising global prices due to the closure of the Strait of Hormuz and ongoing conflicts in the West Asia region.