PM announces cut in petrol price by Rs80
Rs129b deployed to cushion inflation blow
Relief package targets commut
Prime Minister Shehbaz Sharif. SCREENGRAB
ISLAMABAD:
In a surprise announcement, Prime Minister Shehbaz Sharif on Friday ordered an immediate Rs80 per litre reduction in the petroleum levy, bringing petrol prices down from Rs458 to Rs378 per litre for one month, alongside a wide-ranging relief package that includes targeted subsidies for transport, farmers and low-income consumers amid soaring global oil prices.
The new price would take effect at 12am on Saturday.
Unveiling the package, the prime minister said the move was aimed at shielding the public from the burden of rising fuel costs triggered by ongoing conflict in the Gulf region.
In addition to the price cut, motorcyclists will receive a subsidy of Rs100 per litre, while goods transport, public transport and freight vehicles will also be provided a subsidy of Rs100 per litre for one month.
Under the relief measures, small trucks will receive Rs70,000 per month, large trucks Rs80,000, and public transport buses Rs100,000 as monthly subsidies.
The prime minister said the objective was to ensure that the cost of essential goods and transport fares does not translate into additional financial pressure on the public.
He also announced support for small farmers, who will be provided Rs1,500 per acre in assistance.
In a further relief measure, the government has decided not to increase fares for economy class passengers on Pakistan Railways, with clear directives issued to the Ministry of Railways in this regard.
Additionally, the prime minister announced that members of the federal cabinet would deposit six months’ salaries into the national exchequer.
Addressing the broader economic context, the prime minister said the ongoing war in the Gulf had driven oil prices to unprecedented levels, severely impacting Pakistan as well.
He said the situation was a “harsh reality” in which “the poor man’s stove is dimming”, farmers are facing immense hardship and new challenges are emerging for ordinary citizens.
He said the government had made every possible effort to utilise national resources to reduce public hardship and protect citizens from an “inflation storm”.
Over the past three weeks alone, he said, Rs129 billion had been spent from national resources to prevent the full impact of rising oil prices from reaching the public.
The prime minister noted that even major global economies were struggling under inflationary pressure, while Pakistan, too, was being significantly affected.
He stressed that passing on the full burden of recent oil price increases to the public was “not appropriate”.
Highlighting the consultative process behind the measures, he said the relief package was finalised after extensive deliberations, including a national consultation hosted by the president, attended by provincial chief ministers, the prime minister of Azad Kashmir, the caretaker chief minister of Gilgit-Baltistan, and other senior leadership, including deputy prime minister and Chief of Army Staff and Chief of Defence Forces Field Marshal Asim Munir.
He expressed gratitude to provincial chief ministers – Maryam Nawaz, Murad Ali Shah, Sohail Afridi and Mir Sarfraz Bugti – for committing provincial resources to support the national effort.
He said that all measures would also apply to Gilgit-Baltistan and Azad Kashmir, with the federal government bearing the financial cost.
Referring to global disruptions, he said that in several countries long queues and severe shortages had emerged, but Pakistan had managed to avoid such crises through timely decisions and coordinated efforts.
The prime minister reaffirmed the government’s commitment to public welfare, stating that efforts would continue until citizens are able to return to normal life with “peace and comfort”.
He added that the government would utilise all available resources to ease public hardship during this critical period.
In a related development, the government issued a notification announcing a reduction in the Petroleum Development Levy (PDL) on petrol, bringing it down to Rs80 per litre as part of its broader fuel relief measures.
According to the notification, the levy on petrol has been cut to Rs80 per litre. The revised rates also set the PDL on high-octane blending component (HOBC) at Rs305.37 per litre, kerosene oil at Rs20.36 per litre, light diesel oil at Rs55.84 per litre and furnace oil at Rs77 per litre.
Meanwhile, the Petroleum Development Levy on high-speed diesel has been set at zero.
