Islamabad: Facing widespread protests over a steep fuel price hike, the government of Pakistan has rolled back petrol prices and introduced relief measures, including free public transport in key regions.
Prime Minister Shehbaz Sharif announced a reduction in petrol prices from 485 rupees per litre to 378 rupees per litre, just days after a sharp 42.7% increase triggered public outrage and long queues at fuel stations. The revised rate will remain effective for at least one month. However, diesel prices remain unchanged at 520 rupees per litre following a significant hike.
Relief Measures Rolled Out
To ease the burden on citizens, the government has announced free public transport in Islamabad for 30 days. Similar initiatives have been introduced in Punjab, where Chief Minister Maryam Nawaz Sharif declared free travel on state-run transport and subsidies for commercial vehicles.
In Sindh, including Karachi, authorities have announced targeted subsidies for motorcyclists and small farmers to cushion the impact of rising fuel costs.
Protests Force Policy Reversal
The sudden spike in fuel prices sparked protests across cities like Lahore, with demonstrators calling the hike a “petrol bomb” on the public. Many citizens also blamed economic pressures linked to the International Monetary Fund, urging the government to resist external demands.
Iran Conflict Behind Fuel Crisis
The fuel crisis is linked to disruptions in global energy supply due to tensions involving Iran. Shipping through the strategically important Strait of Hormuz has been affected, impacting fuel availability and prices worldwide.
Additional Measures to Manage Crisis
To cope with the ongoing situation, the government has introduced fuel-saving steps such as a four-day workweek for some offices, extended school holidays, and partial shift to online classes.
With nearly a quarter of its population living below the poverty line, rising fuel costs have put additional pressure on the economy, prompting the government to act quickly to contain public anger.