ISLAMABAD: Pakistani federal and provincial authorities announced multi-level relief on Friday to protect consumers from surging fuel costs, rolling out free transport, fare freezes and targeted subsidies even as the government grappled with high petroleum prices driven by the Iran war.
The measures come after two major fuel price increases within a short span — a Rs55 per liter hike in March and a sharper increase on Thursday that pushed petrol to Rs458.41 and diesel to Rs520.35 — levels that remain elevated despite a subsequent cut of Rs80 in the petrol levy announced by Prime Minister Shehbaz Sharif on Friday night.
In Islamabad, Interior Minister Mohsin Naqvi said public transport would be made free for 30 days, with the government bearing a cost of Rs350 million ($1.26 million).
“On the directions of the Prime Minister, all public transport in Islamabad will be made free of cost for the general public for the next 30 days,” he said in a social media post.
Pakistan Railways said fares would not be increased despite rising diesel costs, with the government absorbing an estimated Rs6 billion ($21.6 million) burden to avoid passing on the impact to passengers and freight operators.
Rail travel remains a key mode of long-distance transport in Pakistan and is often cheaper than intercity bus services operating on the country’s motorways and highways.
The federal government had already announced targeted subsidies for transporters, including financial support for passenger buses and freight trucks, to prevent a spike in fares and logistics costs, as it announced the fuel price increases on Thursday night.
Punjab Chief Minister Maryam Nawaz Sharif also announced free intra-city public transport along with fuel subsidies for farmers and motorbike users. She said the measures were aimed at encouraging public transport use and easing the burden on daily commuters amid rising fuel costs.
In Sindh, Chief Minister Syed Murad Ali Shah announced a Rs55 billion ($198 million) targeted subsidy package for motorbike users, small farmers and the transport sector, as part of a coordinated response between federal and provincial governments.
“The Sindh government will have to bear a burden of Rs55 billion to fund the subsidies it has announced for the people,” he said.
Officials say the measures are aimed at limiting the inflationary impact of higher fuel prices, which have raised transport and production costs across sectors in a country heavily dependent on imported energy.
The surge in prices follows supply disruptions linked to the ongoing US-Israeli war on Iran and the closure of the Strait of Hormuz, a critical route for global oil shipments.
