ISLAMABAD: On Friday, Shehbaz Sharif announced an immediate reduction of Rs80 per litre in the petroleum levy, lowering the retail price of petrol to Rs378 per litre. Meanwhile, Federal Minister for Interior Mohsin Naqvi declared that all public transport in Islamabad would be free for 30 days.
The crisis was triggered by a sharp surge in global oil prices following the ongoing conflict involving the United States, Israel, and Iran, which has severely disrupted international energy markets and threatened the flow of crude through the Strait of Hormuz. In response, the government on Thursday raised petrol prices by 43% to Rs458.41 per litre and high-speed diesel by 55% to Rs520.35 per litre, prompting widespread public backlash, street protests in Lahore, and long queues at fuel stations across the country.
Acknowledging the burden on ordinary citizens, the Prime Minister stated that the government had absorbed Rs129 billion in subsidies over the preceding three weeks to shield the public from the full brunt of rising international prices. The revised petrol rate of Rs378 per litre will remain in effect nationwide for at least one month.
In a parallel relief effort, Interior Minister Mohsin Naqvi announced that all public transport in Islamabad would be free of charge for 30 days, with the Ministry of Interior bearing an estimated cost of Rs350 million.
CM Punjab Maryam Nawaz extended the same measure province-wide, making the Orange Line Metro, Metro Bus, Speedo buses, and Green Electric Buses free for daily commuters. Sindh Chief Minister Murad Ali Shah, meanwhile, announced a monthly cash subsidy of Rs2,000 for registered motorcycle owners across the province, to be disbursed digitally through the excise department within 15 days.
Additional relief measures include a Rs100-per-litre diesel subsidy per acre for farmers, targeted monthly financial support for freight and passenger transport operators, and a freeze on Pakistan Railways’ economy-class fares. Federal cabinet members also extended their salary contributions to the national exchequer from 2 months to 6 months under the government’s broader austerity programme.
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