Late Friday night, Prime Minister Shehbaz Sharif announced an Rs. 80 per litre reduction in petrol prices, just a day after a record increase had pushed fuel costs to historic highs across Pakistan.
Starting midnight Saturday, petrol prices will drop from Rs. 458.41 per litre to Rs. 378 per litre, partially reversing Thursday’s massive hike. Diesel prices, which had surged to Rs. 520.35 per litre after a Rs. 184.49 increase, will also see relief under the government’s subsidy measures.
The initial price surge was largely driven by global energy market disruptions following escalating tensions involving the United States, Israel, and Iran, which affected crucial oil shipments through the Strait of Hormuz. As an oil-import-dependent country, Pakistan remains vulnerable to sudden spikes in crude prices.
Government Relief Measures
Addressing the nation, the Prime Minister emphasized that the Rs. 80 reduction is part of a broader effort to ease the financial burden on households. The cut will be funded through a temporary reduction in the petroleum levy and will remain in effect nationwide for at least one month.
Existing targeted subsidies will continue alongside the price cut:
- Motorbike owners: Rs. 100 per litre subsidy, up to 20 litres per month for three months
- Small farmers: One-time Rs. 1,500 per acre to offset diesel costs during harvest
- Freight operators: Rs. 70,000 monthly support; larger vehicles Rs. 80,000
- Public buses: Rs. 100,000 monthly assistance
- Pakistan Railways: Government support to prevent fare hikes for low-income passengers
Additionally, cabinet salary reductions have been extended from two months to six months, with savings redirected toward public relief efforts.
