By Staff Reporter
ISLAMABAD: Prime Minister Shehbaz Sharif on Friday announced an Rs80-a-liter cut in the petroleum levy that will bring retail petrol prices down to Rs378 a liter starting at midnight Saturday.
The reduction comes barely 24 hours after the government imposed one of the largest-ever fuel-price increases, raising petrol by Rs137.41 a liter — equivalent to a 43% jump — and high-speed diesel by Rs184.49 a liter, or 55%. Petrol had climbed to Rs458 a liter before the new relief took shape.
Speaking in a televised address to the nation, Sharif framed the levy cut as an immediate response to the hardships inflicted by soaring global oil prices, which he attributed directly to the ongoing war in the Middle East. “Oil prices have skyrocketed across the region,” he said, adding that Pakistan, like even the world’s largest economies, was “badly affected” by the resulting surge in inflation.
The prime minister said he had deliberately held off passing on daily international price increases for the past three weeks, conscious of the strain on ordinary citizens. “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.
Sharif described the decision as part of a broader effort to shield households, farmers and small businesses using the government’s limited fiscal space. “Through careful savings and prudent use of resources, we tried to shield you from the storm of inflation.” He noted that the burden has fallen most heavily on low-income families, ordinary citizens and farmers. The government, he added, would continue working with federal and provincial authorities to ease those pressures “at this critical time.”
The announcement followed extensive consultations at the President’s House, Sharif said. Attending were the four provincial chief ministers, the prime minister of Azad Kashmir and Field Marshal Asim Munir. Sharif also spelled out additional elements of a relief package that federal ministers had begun outlining a day earlier. Motorcycle owners will receive a Rs100-per-liter subsidy on petrol. Small trucks will get a monthly subsidy of Rs70,000, while large trucks will receive Rs80,000. Public-transport operators are to be granted Rs100,000 a month. Freight vehicles will benefit from a Rs100-per-liter fuel subsidy.
Small farmers will receive financial assistance of Rs1,500 per acre. Sharif also said fares for economy-class travel on Pakistan Railways would not be raised. “I want to thank the provincial chief ministers who have committed their resources without delay for this national cause,” he said. The prime minister expressed hope that the Middle East conflict would end soon and stability would return to global energy markets. He also announced an extension of austerity measures within the federal government: cabinet members, who had earlier agreed to forgo salaries for two months, will now go without pay for six months. Sharif said the new petrol price and accompanying relief measures would apply uniformly across the country.
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