Pakistan cuts petrol price by PKR 80 after backlash over steep hike

In a swift policy reversal the government of Pakistan has announced a reduction of PKR 80 per litre in petrol prices just a day after a steep hike triggered widespread public backlash Prime Minister Shehbaz Sharif made the announcement in a latenight address signalling an attempt to ease mounting pressure over rising fuel costs reported news agency PTIThe revised price brings petrol down to PKR 378 per litre effective immediately The decision comes amid growing criticism from citizens and industry stakeholders following one of the sharpest fuel price increases in recent years reported PTIUnprecedented hike sparked public outrageThe move follows Thursdayrsquos announcement of a significant surge in fuel prices with petrol rising by 43 per cent and highspeed diesel HSD by 55 per cent Petrol prices had jumped from PKR 32117 to PKR 45841 per litre after the government increased the levy from PKR 105 to PKR 160 per litre reported PTISimilarly HSD prices were raised from PKR 33586 to PKR 52035 per litre although the levy on diesel was removed The contrasting approach led to calls for similar relief on petrol intensifying public dissatisfaction reported PTIThe abrupt increase had raised concerns about inflationary pressures particularly on transportation and essential goods prompting the government to reconsider its decision within hoursGovernment cites global factors behind price volatilitySharif attributed the volatility in fuel prices to developments in global energy markets particularly tensions in the Gulf region Disruptions in petroleum supply including the closure of the Strait of Hormuz and ongoing conflict in West Asia have led to sharp increases in international oil prices reported PTIHe stated that the government had initially tried to absorb some of the impact by providing subsidies worth billions over recent weeks delaying price adjustments despite rising global costsRelief measures announced for vulnerable groupsAlongside the price cut the government introduced a set of targeted relief measures aimed at easing the burden on lowerincome groups and key sectors Motorcycle users will receive a subsidy of PKR 100 per litre while goods transport vehicles are set to receive financial assistance ranging from PKR 70000 to PKR 80000 reported PTIPassenger transport operators will be provided support of up to PKR 100000 and small farmers will receive assistance of PKR 1500 per acre Additionally the government has decided not to increase economyclass fares for Pakistan Railways offering further relief to daily commuters reported PTIAusterity steps extended as economic pressures persistIn a bid to manage the fiscal strain Sharif announced stricter austerity measures within the government Federal cabinet members who had earlier agreed to forgo salaries for two months will now not receive salaries for six monthsThe prime minister acknowledged the financial challenges faced by citizens and reiterated that the government would continue efforts to stabilise prices and support the economy He added that the relief measures would also extend to regions such as Pakistanadministered Kashmir and GilgitBaltistan with full financial backing from the federal governmentThe latest developments highlight the delicate balance authorities are attempting to maintain between managing fiscal constraints and addressing public concerns amid a volatile global energy environmentWith inputs from PTI