Prime Minister announces cut in petrol price by Rs 80. 129 billion rupees are deployed to cushion the blow of inflation. Aid package aims for commutation
Prime Minister Shehbaz Sharif. SCREEN CAPTURE
ISLAMABAD:
In a surprise announcement, Prime Minister Shehbaz Sharif on Friday ordered an immediate Rs 80 per liter reduction in oil tax, lowering petrol prices from Rs 458 to Rs 378 per liter for a month, along with a broad aid package that includes targeted subsidies for transport, farmers and low-income consumers amid rising global oil prices.
The new price would come into effect at 00:00 on Saturday.
Unveiling the package, the prime minister said the move was aimed at protecting the public from the burden of rising fuel costs caused by the ongoing conflict in the Gulf region.
Apart from the price cut, motorcyclists will receive a subsidy of Rs 100 per liter, while goods transport, public transport and cargo vehicles will also receive a subsidy of Rs 100 per liter for a month.
Under the relief measures, small trucks will receive Rs 70,000 per month, big 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 does not result in additional financial pressure on the public.
He also announced support for smallholder farmers, who will be provided Rs 1,500 per acre in assistance.
As an additional relief measure, the government has decided not to increase fares for economy class passengers on Pakistan Railways and has issued clear directives to the Ministry of Railways in this regard.
Additionally, the prime minister announced that members of the federal cabinet would deposit six months’ salary into the national treasury.
Referring to the broader economic backdrop, the prime minister said the ongoing war in the Gulf had pushed oil prices to unprecedented levels, severely affecting Pakistan as well.
He said the situation was a “harsh reality” where “the poor man’s stove is going out”, farmers are facing immense difficulties and new challenges are emerging 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, 129 billion rupees of national resources had been spent 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 was also being significantly affected.
He stressed that shifting the entire burden of recent increases in oil prices to the public was “not appropriate.”
Highlighting the consultative process behind the measures, he said the relief package was finalized after extensive deliberations, including a national consultation organized by the President, which was attended by provincial chief ministers, Chief Minister of Azad Kashmir, Acting Chief Minister of Gilgit-Baltistan and other senior leaders including Deputy Prime Minister and Chief of Army Staff and Chief of Defense 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 all the measures would also apply to Gilgit-Baltistan and Azad Kashmir, and the federal government would bear the financial cost.
Referring to global disruptions, he said long queues and severe shortages had emerged in several countries, 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 and stated that efforts will continue until citizens can 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 the Petroleum Development Levy (PDL) on petrol, bringing it down to Rs 80 per liter as part of its broader fuel relief measures.
As per the notification, the tax on petrol has been reduced to Rs 80 per litre. The revised rates also fixed the PDL for high octane blending component (HOBC) at Rs 305.37 per liter, kerosene at Rs 20.36 per liter, light diesel at Rs 55.84 per liter and furnace oil at Rs 77 per liter.
Meanwhile, the Petroleum Development Tax on high-speed diesel has been set at zero.
