The Prime Minister announces a reduction in the price of petrol by 80 rupees. 129 billion rupees deployed to cushion the shock of inflation. The relief plan targets home-work travel.
Prime Minister Shehbaz Sharif. SCREENSHOT
ISLAMABAD:
In a surprise announcement, Prime Minister Shehbaz Sharif on Friday ordered an immediate cut of Rs 80 per liter in the petroleum tax, bringing down petrol prices from Rs 458 to Rs 378 per liter for a month, alongside a broad relief package that includes targeted subsidies for transport, farmers and low-income consumers amid soaring global oil prices.
The new price would come into effect at midnight on Saturday.
Unveiling the package, the Prime Minister said the move was aimed at protecting the public from the burden of rising fuel prices triggered by the ongoing conflict in the Gulf region.
In addition to the price cut, motorcyclists will get a subsidy of Rs100 per liter, while goods transport, public transport and goods vehicles will also get a subsidy of Rs100 per liter for a month.
As part of the relief measures, small trucks will get Rs 70,000 per month, large trucks Rs 80,000 and public transport buses Rs 100,000 as monthly subsidies.
The Prime Minister said the aim was to ensure that the cost of essential goods and transport fares did not translate into additional financial pressure on the public.
He also announced support for small farmers, who will get assistance of Rs 1,500 per acre.
In another relief measure, the government has decided not to increase fares for economy class passengers on Pakistan Railways, with clear guidelines issued in this regard to the Ministry of Railways.
Additionally, the Prime Minister announced that members of the federal cabinet would pay six months’ salary to the National Treasury.
Addressing the broader economic context, the prime minister said the ongoing war in the Gulf had pushed oil prices to unprecedented levels, also seriously affecting Pakistan.
He said the situation was a “harsh reality” in which “the poor man’s stove goes out”, farmers face immense difficulties and new challenges emerge for ordinary citizens.
He said the government had made every effort to use national resources to reduce public hardship and protect citizens from an “inflationary storm”.
In the last three weeks alone, he said, Rs129 billion was spent from national resources to prevent the impact of rising oil prices from reaching the public.
The Prime Minister pointed out that even major global economies were grappling with inflationary pressures, while Pakistan was also significantly affected.
He stressed that it was “not appropriate” to pass on the full burden of recent oil price increases to the public.
Highlighting the consultative process behind the measures, he said the relief package was finalized after extensive deliberations, including a nationwide consultation convened by the President, which was attended by provincial chief ministers, Prime Minister of Azad Kashmir, Acting Chief Minister of Gilgit-Baltistan and other senior leaders, including Deputy Prime Minister, Chief of Army Staff and Chief of Defense Force Marshal Asim Munir.
He expressed gratitude to the 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 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, saying efforts would continue until citizens could return to normal life with “peace and comfort.”
He added that the government would use all available resources to alleviate public hardship during this critical period.
In a related development, the government issued a notification announcing a reduction in petroleum development cess (PDL) on petrol, bringing it down to Rs 80 per liter as part of its broader fuel relief measures.
According to the notification, the levy on petrol has been reduced to Rs 80 per liter. The revised rates also fix the PDL on high octane blending components (HOBC) at Rs305.37 per liter, kerosene at Rs20.36 per liter, light diesel at Rs55.84 per liter and heating oil at Rs77 per liter.
At the same time, the oil development tax on high-speed diesel was set to zero.
