Petrol price drops to Rs378 as Pakistan PM cuts levy amid backlash

ISLAMABAD: Just a day after an unprecedented surge in petroleum prices, Prime Minister Shehbaz Sharif on Friday announced a major relief measure, slashing the petroleum levy by Rs80 per litre and bringing the price of petrol down to Rs378 per litre.

In a late-night address to the nation, the prime minister also declared that all federal cabinet members would forgo their salaries for the next six months as part of austerity measures.

His seven-minute televised address came after the unprecedented increase in petroleum prices sparked outrage from across the country.

Explaining the earlier sharp increase in fuel prices amid the ongoing US-Israel war on Iran, the PM expressed hope that prices would return to pre-war levels once the conflict subsides.

“The price of petrol had risen to Rs458 per litre. To ease the impact, I have decided to reduce the petroleum levy by Rs80 per litre, bringing the price down to Rs378,” he said.

During his address to the nation, the prime minister outlined the reasons behind Thursday’s steep hike, when the government raised petrol prices by Rs137.23 per litre (42.7pc) to Rs458.41 and high-speed diesel (HSD) by Rs184.49 per litre (55pc) to Rs520.35, effective immediately.

The price of kerosene was also increased by Rs34.08 per litre to Rs457.80.

To manage the impact on transport and freight costs, the petroleum levy on petrol had earlier been raised to Rs160 per litre from Rs105, while it was reduced to zero on diesel.

Alongside the price adjustments, the government introduced measures to cushion the public from global oil shocks, including early market closures and targeted subsidies for bikers, farmers, and transporters.

On Friday, further relief steps were announced by both federal and provincial authorities. The government confirmed that train fares would remain unchanged, road taxes would not be increased, and free public bus services would be provided in the federal capital as well as in Punjab and Sindh.

Earlier, Sindh and Punjab governments on Friday announced major relief measures to cushion the impact of rising fuel prices, including cash subsidies for motorcyclists, support for farmers and transporters and free public transport services on intra-city routes.

Sindh Chief Minister Syed Murad Ali Shah on Friday announced a Rs55 billion relief and subsidy package, with a special focus on providing financial support to motorcycle owners affected by rising fuel prices.

He made the announcement while addressing a press conference at the CM House alongside provincial ministers and Karachi Mayor Murtaza Wahab. The chief minister said the programme aims to support low-income individuals, especially those who rely on motorcycles for daily commuting.