Pakistan has announced to reduce the price of petrol by Rs 80 per liter to Rs 378. Prime Minister Shahbaz Sharif said that this deduction will be made from the government’s petroleum levy (tax). This announcement was made when people took to the streets to protest and long queues of motorcycles formed at petrol pumps. All this happened due to a late night decision taken to increase the price of petrol by 42.7 percent to Rs 485 per liter. This cut in petrol prices by the Government of Pakistan comes just a day after the government increased the consumer prices of diesel and petrol. The government had cited the increase in global oil prices due to the ongoing conflict in the Middle East as the reason for increasing the prices.
No cut in diesel prices
In his televised address to the nation, he said that this reduction will remain in effect for at least a month. He further said that I promise that I will not rest until your life becomes normal. Sharif has not cut the price of diesel. After the price increase of 54.9 percent, the price of diesel will remain at Rs 520 per liter. State-run public transport in Islamabad will remain free for the next one month, officials said on Friday.
Public transportation free for 30 days
Interior Minister Mohsin Naqvi wrote on ‘X’ (Twitter) that all public transport in Islamabad will be made free for the general public for the next 30 days, starting from tomorrow (Saturday). He further said that this will have an economic burden of Rs 350 million on the government. The chief minister of Punjab, Pakistan’s most populous province, also waived fares on state-run public transport and announced “targeted subsidies” for trucks and buses. Maryam Nawaz Sharif urged transport operators not to pass the burden of increased costs on passengers. He said that we promise that as soon as the situation improves, we will provide relief to the public from this economic burden. Additionally, Sindh (Karachi) authorities also announced similar subsidies for motorcyclists and small farmers.
Why did the fuel crisis arise?
The Pakistani government has announced several measures aimed at saving fuel. These include reducing the working days in many government offices to four days, increasing school holidays and conducting some classes through online medium. To deal with the crisis caused by the Iran war, many Asian countries have either increased fuel prices or implemented other measures. This crisis has arisen because energy transportation through the Strait of Hormuz has been disrupted. On Thursday, Bangladesh increased the prices of liquefied petroleum gas (LPG), used in cooking, and compressed natural gas, used in some cars, by 29 percent.
IMF had warned
Earlier this week, the International Monetary Fund (IMF) warned that vulnerable economies like Pakistan are under pressure not only from higher energy prices but also from supply chain disruptions. On March 28, the IMF announced an initial agreement with Pakistan, under which a new package of $1.2 billion will be issued as part of its assistance programs for the country. Hafiz Abdul Rauf, another protester in Lahore, said that the increase in prices we are seeing is not because of the (Iran) war, but because of pressure from the IMF. A pressure that must be resisted. For God’s sake, step back from these demands and show some empathy towards people.