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–PM Shehbaz Sharif slashed petrol prices by Rs80 per litre for one month, citing global oil shocks and relief measures for inflation-hit consumers
Aftab Maken
ISLAMABAD: Prime Minister Shehbaz Sharif on late Friday night announced an Rs 80 per litre reduction in petrol prices for one month, bringing the new rate down to Rs 378 per litre from midnight. The move follows a sharp surge in global oil prices driven by escalating tensions in the Gulf region.
Addressing the nation, Shehbaz Sharif said the government decided to cut the petroleum levy immediately to ease the burden on consumers. He noted that petrol prices had recently climbed to around Rs 458 per litre, reflecting international market trends. The latest reduction aims to provide temporary relief to households and businesses facing rising costs.
The prime minister said the revised price would remain effective for one month, after which the government would review market conditions. He acknowledged that fuel costs directly affect transport, food prices, and overall inflation. He warned that global volatility continues to pose risks to Pakistan’s fragile economic recovery.
Pakistan relies heavily on imported petroleum products, making domestic prices sensitive to international fluctuations. According to the State Bank of Pakistan, oil imports account for a significant portion of the country’s import bill, often exceeding $15 billion annually in recent years. This dependence exposes the economy to external shocks, particularly during geopolitical crises.
The prime minister said the government had absorbed part of the recent price shock by spending around Rs29 billion over the past three weeks. He added that authorities delayed passing the full increase to consumers, considering the financial strain on ordinary citizens. Inflation remains a major concern, with Pakistan’s consumer price index hovering in double digits in recent months, as per official statistics.
Shehbaz Sharif said the government also decided not to increase railway fares for economy-class passengers. He described the measure as part of broader efforts to shield lower-income groups from rising living costs. Pakistan Railways serves millions of passengers annually, many of whom rely on subsidized travel.
In addition, the prime minister announced financial support for small farmers, pledging Rs1,500 per acre to help offset rising input costs. Agriculture remains a key sector, contributing about 23 percent to Pakistan’s GDP and employing a large share of the workforce, according to the Pakistan Bureau of Statistics. Rising fuel and fertilizer costs have recently increased pressure on farmers.
Shehbaz Sharif thanked provincial leaders for contributing resources to support the relief package. He named Punjab Chief Minister Maryam Nawaz, Sindh Chief Minister Murad Ali Shah, Khyber Pakhtunkhwa Chief Minister [verify], and Balochistan Chief Minister Mir Sarfraz Bugti for their cooperation. He said the coordinated effort reflects a unified national response to economic challenges.
The prime minister linked the recent spike in oil prices to ongoing conflict in the Gulf region. He said the crisis has disrupted supply chains and pushed crude prices higher across global markets. According to international energy agencies, Brent crude has shown heightened volatility amid geopolitical uncertainty, affecting fuel-importing countries like Pakistan.
He warned that rising energy costs are impacting households, farmers, and small businesses. “The poor man’s stove is slowing down,” he said, highlighting the social impact of inflation. He added that the government would continue taking steps to stabilize prices and protect vulnerable segments of society.
Pakistan has faced recurring fuel price adjustments due to currency depreciation and fiscal constraints. Under agreements with the International Monetary Fund, the government has committed to reducing subsidies and increasing revenue through measures like petroleum levies. These policies aim to stabilize public finances but often lead to higher domestic fuel prices.
Recent data from the Pakistan Bureau of Statistics shows that transport and energy costs are among the largest contributors to inflation. Analysts say any reduction in fuel prices can have a cascading effect on broader price levels, although the impact may be temporary if global prices remain elevated.
Shehbaz Sharif said extensive consultations were held before announcing the relief package. He noted that political and military leadership participated in discussions at the President House and Prime Minister House. The government sought consensus to balance fiscal constraints with public welfare needs.
He expressed hope that regional tensions would ease soon, allowing global oil markets to stabilize. He said Pakistan’s diplomatic leadership, including the foreign minister and senior officials, is actively engaged in efforts to de-escalate the situation. A prolonged conflict could further strain the country’s external accounts and inflation outlook.
Economists say the Rs80 per litre reduction provides short-term relief but raises questions about fiscal sustainability. Lower petroleum levies could reduce government revenue at a time when Pakistan is working to meet budget targets. However, officials argue that targeted relief is necessary to maintain social stability.
The latest move underscores the government’s attempt to balance economic reforms with political realities. With inflation still high and growth under pressure, policymakers face limited room to maneuver. Future fuel pricing decisions will likely depend on global oil trends and ongoing negotiations with international lenders.
As Pakistan navigates external shocks and domestic challenges, the petrol price cut by Shehbaz Sharif signals a temporary shift toward consumer relief, though longer-term stability will hinge on structural reforms and global market conditions.
