Business Recorder
ISLAMABAD: Prime Minister Shehbaz Sharif on Friday announced that the government would reduce the petroleum levy on petrol by Rs80 per litre for one month, a day after a sharp increase in fuel prices, in a move aimed at easing pressure on consumers. In a televised address to the nation, PM Sharif said the reduction would bring the petrol price down to Rs378 per litre, effective from 12am (Saturday) while the price of diesel would remain unchanged at Rs520 per litre. He said Pakistan was passing through a challenging period amid a war in the Middle East that had driven up global oil prices, with the country feeling the impact of rising energy costs. READ MORE: Pakistan govt hikes petrol price to Rs458, diesel to Rs520 per litre The prime minister noted that the surge in prices had placed a significant burden on low-income households, the wider public and farmers. He said the government had sought to utilise limited national resources to provide relief and support public welfare. PM Sharif added that oil prices had risen sharply in international markets, with even major economies grappling with inflationary pressures, and said Pakistan had been significantly affected. He said he had refrained from passing on the full impact of rising oil prices to consumers over the past three weeks, citing concerns about the financial strain on ordinary citizens. The prime minister said rail fares for economy-class passengers would not be increased, while small farmers would receive financial support of Rs1,500 per acre. He said the government was taking steps to shield lower-income groups from rising costs as global oil prices continued to surge. He also thanked provincial leaders, including Punjab Chief Minister Maryam Nawaz, Sindh Chief Minister Murad Ali Shah, Khyber Pakhtunkhwa Chief Minister Sohail Afridi and Balochistan Chief Minister Sarfraz Bugti, for contributing provincial resources towards what he described as a national cause. He said oil prices across the region had risen sharply, creating fresh challenges for ordinary citizens. “National resources are limited, and there has been an extraordinary increase in oil prices in global markets,” he said, adding that he was aware of the financial pressures faced by the average Pakistani. He further noted that inflation had strained even the world’s strongest economies. Over the past three weeks, the government had provided subsidies worth Rs129 billion from national resources to shield consumers from the full impact of rising fuel costs, he said, describing the situation as an “economic storm” requiring immediate intervention. He also referred to international developments and expressed hope for an early return to peace in conflict-affected regions contributing to volatility in global markets. PM Sharif said diplomatic efforts were under way at multiple levels, adding that he, Deputy Prime Minister and Foreign Minister Ishaq Dar, and Field Marshal Syed Asim Munir were making all-out efforts to help end the Middle East conflict through mediation and diplomacy. He said the government would introduce targeted subsidies for several sectors alongside the petrol price cut. Motorcyclists would receive a subsidy of Rs100 per litre, aimed at supporting lower-income commuters who rely on two-wheelers for daily travel, he said. The transport sector would also receive support, with subsidies planned for freight and commercial vehicles to help offset rising operating costs. Public transport buses would be given a monthly subsidy of Rs100,000 to help keep fares stable for passengers, he added. Copyright Business Recorder, 2026
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