ISLAMABAD: Pakistan’s prime minister on Friday cut petrol prices by Rs80 ($0.29) per liter, a day after the government sharply raised fuel prices in response to the global oil shock triggered by the Iran war.
The decision lowers petrol prices from Rs458.41 ($1.65) to Rs378 ($1.36) per liter from midnight (Saturday), partially reversing Thursday’s increase, when the government raised petrol by Rs137.24 ($0.49) per liter and diesel by Rs184.49 ($0.66) per liter. Diesel was raised to Rs520.35 ($1.87) per liter on Thursday.
The rollback comes after the government on Thursday said it was passing on rising international oil costs caused by the conflict involving the United States, Israel and Iran, which has disrupted global energy markets and shipping routes, particularly through the Strait of Hormuz, a critical artery for oil supplies.
In his address, Prime Minister Shehbaz Sharif said the government had already announced targeted subsidies for motorbike users, farmers, freight transport and public transport but had decided broader relief was also needed after consultations with national and provincial leaders because higher fuel prices would still leave households under pressure.
“With this in mind, I would like to announce today that the price of petrol, which is Rs. 458 per liter, will be reduced to Rs. 378 per liter,” Sharif said.
He said the reduction would be financed through an Rs80 ($0.29) per liter cut in the petroleum levy and would remain in place for at least one month across Pakistan.
The prime minister said the targeted subsidies announced on Thursday would continue. Under that package, motorbike users are to receive Rs100 ($0.36) per liter, capped at 20 liters a month for three months, while small farmers are to get a one-time payment of Rs1,500 ($5.40) per acre to offset higher diesel costs during harvesting.
The government had also announced monthly support for the transport sector, including Rs70,000 ($252) for freight trucks, Rs80,000 ($288) for larger transport vehicles and Rs100,000 ($360) for public passenger buses, while Pakistan Railways was to receive support to keep lower-class fares manageable.
Pakistan, which relies heavily on imported fuel, has been trying to cushion consumers from the fallout of the conflict while maintaining supply. Sharif said the government had avoided the severe shortages and long queues seen in some other countries affected by the crisis.
He also announced additional austerity measures, including extending cabinet salary cuts from two months to six months, as the government seeks to redirect more resources toward relief for consumers.
Last month, Pakistan raised consumer prices for diesel and petrol by about 20 percent, citing higher oil prices driven by the US-Israeli war on Iran.
