Prime Minister Shehbaz Sharif reduced petrol prices by Rs. 80 per litre late Friday, just one day after announcing a historical increase of Rs. 137.
He announced that petrol prices will drop from Rs. 458.41 per litre to Rs. 378 per litre starting midnight Saturday. This decision partially reverses Thursday’s sharp increase, which had pushed fuel prices to historical levels across Pakistan.
The government took this step because global energy markets became unstable due to rising conflict between the United States, Israel, and Iran. These tensions disrupted oil supply routes, especially through the Strait of Hormuz, which is a key global oil route. Pakistan, as an oil-importing country, remains highly vulnerable to sudden increases in global oil prices.
Govt Moves to Reduce Public Burden
In his address to the nation, the prime minister said the government decided to increase relief measures after consulting federal and provincial leaders. He acknowledged that high fuel prices would continue to affect households despite earlier subsidies.
The government will fund the Rs. 80 reduction by temporarily cutting the petroleum levy. This reduced price will apply nationwide for at least one month.
Subsidy Package to Continue
The government will continue the previously announced subsidy programs along with the price cut.
- Motorbike owners will receive a subsidy of Rs. 100 per litre, limited to 20 litres per month for three months.
- Small farmers will receive a one-time payment of Rs. 1,500 per acre to offset higher diesel costs during harvesting.
- Freight transport operators will get Rs. 70,000 per month, while larger vehicles will receive Rs. 80,000.
- Public buses will receive Rs. 100,000 in monthly support.
- Pakistan Railways will also receive financial assistance to prevent fare increases for low-income passengers.
The Prime Minister Shahbaz Shareef also extended cabinet salary cuts from two months to six months to redirect these government funds toward public relief.
