Just a day after a record surge in fuel prices, Prime Minister Shehbaz Sharif on Friday announced a major relief measure, slashing the petroleum levy by Rs80 per litre and reducing petrol prices to Rs378 per litre.
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In a late-night televised address, the prime minister also declared that all federal cabinet members would forgo their salaries for six months as part of austerity efforts.
The move came after widespread public backlash over Thursday’s unprecedented increase, which had pushed petrol prices to Rs458 per litre and high-speed diesel above Rs520.
Explaining the earlier hike, the premier said global oil price volatility driven by the ongoing US-Israel-Iran conflict had forced the government to take “difficult decisions,” expressing hope that prices would ease once the conflict subsides.
Despite the rollback, kerosene prices remain elevated, while broader measures introduced earlier — including targeted subsidies and early market closures — remain in place to manage energy demand.
Relief Measures Expanded
The federal government also confirmed additional relief steps, including maintaining train fares, avoiding new road taxes, and introducing free public transport services in the federal capital and provinces.
In Sindh, Chief Minister Murad Ali Shah unveiled a Rs55 billion relief package aimed at supporting low-income groups.
Under the scheme, around 6.7 million motorcycle owners will receive Rs2,000 per month — equivalent to a subsidy of Rs100 per litre on up to 20 litres of fuel. The payments will be made through a digital registration system managed by the Excise Department.
The package also includes support for approximately 336,000 small farmers, who will receive Rs1,500 per acre to offset diesel costs, along with financial assistance for transporters to prevent fare hikes.
Punjab Announces Free Transport
In Punjab, Chief Minister Maryam Nawaz announced free intra-city public transport across the province, including the Orange Line Train, Metro Bus, Speedo Bus, and Green Electric Bus services.
She also introduced subsidies for farmers and motorcyclists, including diesel support of 10 litres per acre for wheat growers and fuel subsidies for bike owners.
Transporters in Punjab will receive monthly subsidies ranging from Rs70,000 to Rs100,000 depending on vehicle type, with strict instructions not to pass increased costs onto passengers.
Free Transport in Islamabad
Interior Minister Mohsin Naqvi announced that public transport in Islamabad will remain free for 30 days, with the federal government bearing an estimated cost of Rs350 million.
Officials said the combined measures aim to shield citizens from inflation and mitigate the economic impact of rising global fuel prices, while maintaining fiscal discipline.
