Pakitan govt slashes petrol price by PKR 80 per litre, day after sharp hike met severe backlash

Islamabad: A day after an unprecedented surge in fuel prices triggered severe backlash, Pakistan Prime Minister Shehbaz Sharif has announced slashing the petrol price by PKR 80.

Sharif in a midnight address Friday announced that the government has decided to reduce petrol levy by PKR 80 per litre, making the commodity available to the end consumer for PKR 378 per litre.

The government on Thursday announced an unprecedented hike of 43 per cent and 55 per cent in the prices of petrol and high-speed diesel (HSD), respectively.

The rise in petrol price from PKR 321.17 to PKR 458.41 per litre came as the government levy increased from PKR 105 to PKR 160 per litre.

The government had also increased HSD price by PKR 184.49 per litre -- from PKR 335.86 to PKR 520.35 -- but had abolished the levy, prompting demands that the government should follow suit with regard to petrol price, providing some relief to citizens.

“I am announcing an immediate reduction of PKR 80 per litre in petrol levy,” he said, adding that the new price of PKR 378 per litre would take effect from midnight, with petrol available at the revised rate at petrol stations across the country.

The Pakistan prime minister said the petrol price would remain unchanged for at least one month.

He emphasised that the situation in the Gulf region was responsible for the hike in petroleum prices, but the government was making every effort to keep prices in check.

“Through careful savings and prudent use of resources, we tried to shield you from the storm of inflation,” he added.

Sharif said previously it was decided that federal cabinet members would not receive their salaries for two months as part of austerity measures taken by the government to deal with the fuel crunch. However, now they would have to go without salaries for six months, he announced.

“Over the past three weeks, I did not consider it appropriate to pass on the daily increase in oil prices to the public, as I am fully aware of the challenges faced by the common man in making ends meet,” he said.

Additionally, the prime minister announced relief measures for vulnerable segments, including a subsidy of PKR 100 per litre for motorcycle users, PKR 70,000 to 80,000 to goods transport vehicles, and PKR 1,00,000 to passenger vehicles.

“For small farmers, financial assistance of PKR 1,500 per acre has been announced,” he said.

Further, a decision was also taken regarding Pakistan Railways to ensure that fares for economy class passengers would not be increased, he added.

Sharif said the announced measures would also be implemented in Pakistan-occupied Kashmir and Gilgit-Baltistan, for which the government would provide all necessary resources.

“We will continue our efforts until you are able to return to your daily lives with peace and stability, and for this, all available resources will be utilised,” he said.

Pakistan has been hit hard by the disruption in petroleum supplies as global prices rose sharply due to the closing of the Strait of Hormuz and the conflict in West Asia.

The government initially increased prices by PKR 55 per litre for petrol and HSD soon after the war began. However, the prices remained unchanged for three weeks as the government provided PKR 129 billion in subsidies.