Pakistan govt slashes petrol prices after severe backlash over sharp hike

A day after an unprecedented surge in fuel prices triggered sharp backlash, Pakistan Prime Minister Shehbaz Sharif has announced a reduction of PKR 80 in petrol prices by cutting the levy on the fuel.

In a midnight address on Friday, 3 April, Sharif said the government had decided to reduce the petrol levy by PKR 80 per litre, bringing the retail price down to PKR 378 per litre.

The government had on Thursday announced steep hikes of 43 per cent and 55 per cent in the prices of petrol and high-speed diesel (HSD), respectively. Petrol prices had jumped from PKR 321.17 to PKR 458.41 per litre after the government increased the levy from PKR 105 to PKR 160 per litre.

The price of HSD had also been raised by PKR 184.49 per litre — from PKR 335.86 to PKR 520.35 — although the levy on diesel was abolished, prompting demands that similar relief be extended to petrol consumers.

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

He said the petrol price would remain unchanged for at least one month.

The prime minister attributed the fuel price volatility to developments in the Gulf region but said the government was attempting to cushion the impact on citizens. “Through careful savings and prudent use of resources, we tried to shield you from the storm of inflation,” he said.

Sharif also announced stricter austerity measures, stating that federal cabinet members would forgo their salaries for six months. Earlier, the government had decided that ministers would not draw salaries for two months as part of efforts to manage the fuel crisis.

“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.

Relief measures were also announced for vulnerable sections, including a subsidy of PKR 100 per litre for motorcycle users, financial assistance of PKR 70,000 to PKR 80,000 for goods transport vehicles, and PKR 1,00,000 for passenger transport vehicles.

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

He added that Pakistan Railways would not increase fares for economy-class passengers despite the rise in fuel costs.

According to Sharif, the relief measures would also be extended to Pakistan-occupied Kashmir and Gilgit-Baltistan, with the federal government providing the required financial support. “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 severely affected by disruptions in petroleum supplies as global prices surged following the closure of the Strait of Hormuz and the escalation of conflict in West Asia.

Soon after the war began, the government had increased fuel prices by PKR 55 per litre for both petrol and HSD. However, prices were kept unchanged for three weeks as the government absorbed costs through subsidies amounting to PKR 129 billion.

With PTI inputs