Pakistan government considers freezing petroleum product prices despite global increases
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View on mapPM says disbursement of funds for public transport, freight operators has begun through digital wallets
Prime Minister Shehbaz Sharif said on Saturday that the disbursement of relief funds to people operating public transport and freight vehicles had begun through digital wallets. In a post on the social media platform X, the Prime Minister’s Office (PMO) said that PM Shehbaz chaired a meeting to review the country’s petroleum reserves and the measures taken by the government to provide relief to the people during the ongoing crisis. “The prime minister said that the disbursement of relief funds to individuals operating public transport and freight vehicles had begun through digital wallets,” it said. “Subsidies are now being digitally transferred for public transport buses and wagons, as well as goods transport trucks and freight vehicles under an efficient and transparent system,” the premier was quoted as saying. The prime minister added that the government was striving to ensure that relief reaches economically vulnerable groups as quickly as possible, the PMO said. “We will not abandon our people during difficult times. The government’s top priority is providing relief to the people during challenging circumstances. The money saved through government austerity measures will be spent on the public,” the premier was quoted as saying. According to the PMO, PM Shehbaz was briefed on the implementation and progress of the measures taken by the government in view of the hike in the prices of petroleum products. He was informed that adequate reserves of petroleum products were available to meet the requirements of the country. The meeting was also briefed on the overall progress of the initiatives for providing relief to the people, it said. The development comes as fuel prices have sharply increased due to the US-Israeli war on Iran. The government initially hiked petrol and diesel prices by Rs55 per litre on March 6 and announced unprecedented austerity measures on March 9 in the first steps to deal with the situation. On three separate occasions, PM Shehbaz said that he had rejected recommendations to increase fuel prices despite an increase in the global market. However, the government on Thursday announced an unprecedented increase of 43 per cent and 55pc in the prices of petrol and high-speed diesel (HSD), respectively, citing the rising oil prices in the international market. At the same time, the government also announced targeted relief measures; for diesel-dependent inter-city and goods transport, a subsidy of Rs100 per litre will be provided and its price will also be reviewed every month. In addition, trucks carrying 80-85pc of food items would receive direct support of Rs70,000 per month. Large transport vehicles will be given Rs80,000 per month, while inter-city public service vehicles will receive Rs100,000 per month to help keep fares stable. But, just a day later, PM Shehbaz slashed the petroleum levy by Rs80 per litre, bringing the price of the commodity down to Rs378 per litre. In a late-night address to the nation, the prime minister also declared that all federal cabinet members would forgo their salaries for the next six months as part of austerity measures.
DawnApril 4, 2026 at 05:41 PM UTCPlanning minister advocates for revising market timings to rein in oil import bill
Planning Minister Ahsan Iqbal on Saturday advocated for the revision of market timings to cut down on oil usage by saving electricity, as the country faces rising import costs amid the global oil crisis. Addressing a press conference in Lahore, Iqbal stressed the need to reduce energy spending to combat the economic difficulties arising from the ongoing war. Pointing out that Pakistan generated electricity using imported fuel, the planning minister emphasised the need to “bring efficiency in the consumption of petrol and diesel”. Iqbal observed that markets in Pakistan usually opened after 12pm and remained open till 2am, using “electricity generated from imported fuel”. “If we use electricity at night now, this will be generated from furnace oil, which costs the public Rs60-80 per unit,” he explained, asking whether such “irresponsible conduct” suited a nation facing an enormous crisis. “Crises are moments of behavioural change,” he said. The planning minister noted that provinces have been asked to consult with traders and “seek a plan of action within a week so we can ensure the early closure of markets”. Saying that such a move would save the government and the nation from the “unnecessary burden” of billions of rupees, Iqbal requested traders to decide “with empathy” on the matter. He contended that people would eventually adjust to any changes in market timings. The remarks come a day after Power Minister Awais Leghari said that Centre was consulting with provinces on changes to market timings and other conservation measures to reduce the potential rise in power tariffs driven by the high cost of gas and furnace oil. In his remarks, Iqbal claimed that markets in “developed countries or successful economies” such as Japan, the United States, Malaysia, Indonesia and Turkiye did not remain open after 6pm or at most 8pm. “If you go into neighbourhoods after 9pm or 10pm, there is complete calm. People have gone to sleep. Early to bed, early to rise,” he said, stressing that this was also the routine advised by Islamic teachings. The minister further said the government had taken notice of unnecessary hikes introduced by transporters in fares, adding that provinces had been directed to discuss the prices with transporters to prevent profiteering. “You can play your part in the country’s development and stability by preventing the unnecessary usage of a single drop of petrol or diesel,” he said, suggesting that the public adopt several fuel-saving measures. “If you commute to the office alone, then try to carpool with colleagues from your residence or area to your office,” Iqbal said. He further urged people not to use electricity when not needed so that the “country’s import bill can be reduced as much as possible”. Noting that the ongoing conflict was impacting people in the Global South, Iqbal called for facing these challenges as a united nation without politicising them. He urged the media not to report with “sensationalism”, recalling that publications were highlighting politicians’ old remarks against increases in fuel prices. “You cannot compare apples and oranges,” he stated, contending that the past criticism was over price hikes caused by the government’s policies, whereas the current surges were not a result of the government’s performance. ‘All countries facing the same situation’ Separately, Information Minister Attaullah Tarar highlighted the government’s efforts to minimise the war’s toll on the economy and defended its decisions. “This situation is not one of our doing. All countries are facing the same situation,” he said while addressing the media in Lahore alongside Climate Change Minister Musadik Malik. Tarar recalled that when the conflict escalated, it required a “national response”, for which Prime Minister Shehbaz Sharif called a meeting of the national leadership, including all four chief ministers. The information minister noted that PM Shehbaz had alerted all ministries and said that he would not tolerate the people of the country suffering due to a fuel shortage. He said that the whole region faced a fuel shortage, pointing to neighbouring India. He recalled that the government had made arrangements so that such a situation could be avoided. “Because the premier took a proactive approach … there was no shortage anywhere,” Tarar asserted. He said that the issue for Pakistan was that the war had affected supply lines and prices. The minister said PM Shehbaz stayed up countless nights and that his team worked to bear a Rs129bn burden for weeks, highlighting that the government took a host of austerity measures. Tarar asserted that the fuel subsidies announced would aid the common man. He added that the premier still did not “admit defeat”. As a result, Tarar said, PM Shehbaz partially reduced petrol prices after initially announcing an increase. “Believe that whatever is humanly possible … the federal and provincial governments are doing for you,” he said. He added that efforts were also underway at a diplomatic level to secure peace in the Middle East. Meanwhile, Malik said that it was also necessary to conserve fuel. “You send your car somewhere three times a day. Please, stop. Turn off the lights when you leave the room. It is now your national duty,” he said.
DawnApril 4, 2026 at 03:04 PM UTCShahid Khaqan urges govt to deregulate fuel prices, promote electric vehicles
Awaam Pakistan President Shahid Khaqan Abbasi on Saturday called on the government to deregulate petroleum prices and promote electric vehicles (EVs) to absorb the economic impact of rising oil prices amid the US-Israel war on Iran. Since the February 28 strikes by the US and Israel on Iran triggered the war and pushed up global oil prices, fuel prices in Pakistan have reached record highs. In two major hikes, petrol prices have risen from Rs266.17 to Rs378 — after a partial reduction in a recent hike — while those of high-speed diesel have surged from Rs280.86 to Rs520.35. Addressing a press conference in Islamabad, Abbasi said: “I would like to say two things: deregulate the petroleum prices — the government is not capable of handling it — and pay attention to electric vehicles (EVs), especially on motorcycles.” “This amount keeps on increasing […] your system will function only if you incentivise EVs,” he added, citing China as an example of having policies to promote EVs. The former prime minister also raised questions about some provinces’ decisions to make public transport free and distribute funds among certain groups. He contended that “not even Rs20 billion out of the Rs200bn announced would reach” the public due to the high levels of corruption prevalent in government departments. The Awaam Pakistan chief claimed the government adopted “five different policies” over the past month to determine oil prices, adding that it was better to deregulate the prices and leave them dependent on the market. “This is the path Pakistan should take. There is no other way,” he said, recalling that the government had decided in 2018 that petroleum products in Pakistan would be deregulated. “You are the government. You can counter hoarding; it is your responsibility. It does not mean hiking the prices in an untimely manner,” the former premier said. He emphasised that there was a need to “express these faults and understand the issues facing the country today”, adding that it was the government’s job to formulate policies while keeping in mind the lasting impacts of the ongoing war. Abbasi further pointed out that Pakistan had witnessed a “solar revolution” without the government’s interference. “We always try to find whose fault it is,” Abbasi remarked, recalling that first, independent power producers (IPPs) were blamed for the electricity crisis, then the policy of net-metering was identified as the issue. “The government changed the policy four times; they ended net-metering, then it was reintroduced. Why can’t you formulate a permanent policy? This is called elite capture,” he said. On Thursday, the government announced an unprecedented increase of 43 per cent and 55pc in the prices of petrol and HSD, respectively, to cushion the impact of global oil price shocks amid the Middle East conflict. The move was met with considerable backlash from the opposition PTI, with the Jamaat-i-Islami (JI) warning of a nationwide protest movement if the hikes were not withdrawn. On Friday night, Prime Minister Shehbaz Sharif announced that the government was reducing the petrol levy by Rs80 per litre, after which the commodity would be available to end consumers for Rs378 per litre instead of Rs458 per litre.
DawnApril 4, 2026 at 12:02 PM UTCAnother oil shock
THE sharp increase in the domestic price of petrol and diesel is an unavoidable correction amid external price shocks triggered by the US-Israel war on Iran. That the petrol price was reduced by Rs80 in less than 24 hours shows political pressure and confusion in officialdom. Alongside the fuel price adjustments, the government has also ordered early market closures to conserve energy and announced targeted subsidy for motorcycle owners, farmers and transporters. For weeks, the authorities had resisted passing on the full impact of rising oil prices to consumers, absorbing the surge in the budget. Following an earlier increase of Rs55 per litre, the authorities were seemingly banking on a swifter resolution to the Gulf crisis, a bet that cost the national exchequer Rs129bn. That space has now run out. The move shows that Pakistan simply does not have the capacity to sustain fuel subsidies. Years of weak tax revenue mobilisation, coupled with rising public sector expenditures, have left the government with little room to absorb such shocks without risking macroeconomic instability. The pressure is not confined to the fiscal side. The external sector supported by a fragile foreign exchange buffer painstakingly rebuilt over two years is also vulnerable. Higher global oil prices translate into a heavier import bill, threatening to erode reserves and destabilise the exchange rate. Given the ongoing Middle East crisis, the government had no other choice. While the decision is fiscally justified, its consequences for the public will be immediate and severe. A fresh wave of inflation is inevitable. In fact, transporters have already raised fares, freight operators have sharply increased charges, and businesses are passing on higher input costs to consumers. This will cascade through the broader economy, significantly raising the cost of living. The burden will fall disproportionately on low- and middle-income households, many of whom are already struggling to cope with persistent inflation. Targeted subsidies may offer some relief but are unlikely to fully offset the broader price shock that is unfolding. More fundamentally, this crisis underscores a deeper policy failure. For decades, governments have delayed tax reforms and avoided difficult fiscal adjustments. Resultantly, the state remains heavily reliant on indirect taxation. Today, a large part of fuel prices consist of government taxes and levies. Had revenue and spending reforms, such as broadening the tax base and curbing government expenditure, been undertaken earlier, the burden on consumers could have been significantly lower. Instead, citizens are now facing a double squeeze: soaring global energy prices as well as elevated indirect FBR levies imposed to meet the government’s revenue needs. While the fuel price hike was unavoidable it also serves to remind us of the heavy cost the masses are paying for delayed structural reforms. Published in Dawn, April 4th, 2026
DawnApril 4, 2026 at 04:18 AM UTCSharp hike in fuel prices challenged in Lahore High court
LAHORE: The Lahore High Court has been asked to set aside the recent sharp increase in fuel prices. A civil miscellaneous application has been filed in a pending intra-court appeal challenging petroleum pricing. The application, moved by the Judicial Activism Panel through Advocate Azhar Siddique, contends that the federal government has raised petrol and diesel prices in an abrupt, excessive and non-transparent manner during the pendency of the main case, further burdening the public. It highlights that petrol prices have surged to around Rs458 per litre and diesel beyond Rs520 per litre, terming the increase disproportionate and economically exploitative. Case likely to be taken up next week; Sindh lawyers object to raise, ask govt to review decision The plea argues that the hike violates multiple constitutional provisions, including Articles 3, 9, 14 and 25, by undermining citizens’ right to dignity, livelihood and protection against exploitation. It has also questioned the petroleum pricing mechanism, alleging lack of transparency in cost structure and excessive imposition of levies, particularly the Petroleum Development Levy, reportedly reaching up to Rs160 per litre. The plea has asked the court to suspend the recent price hike, declare the existing pricing mechanism unlawful, and restrain authorities from further increases without a transparent, legally justified formula linked to international benchmarks. The application is likely to be fixed for hearing on Monday. Lawyers call price hike ‘unjustified’ The Sindh Bar Council and Sindh High Court Bar Association on Friday strongly condemned the unprecedented increase in petroleum prices. The SBC said that such unjustified surge has placed a heavy burden on the public as well as members of legal fraternity and will further increase the inflation and economic hardship. The council urged the federal government to immediately review and reduce the prices of petroleum products in the interest of people. The SHCBA in a statement said that such unprecedented and unjustified increase has caused an unbearable financial burden on the common man rendering basic necessities increasingly unaffordable. It is highly concerning that despite smart lockdown measures implemented by the government aimed at reducing fuel consumption, such a significant hike in petroleum prices has been enforced, it added. It also maintained that this decision was not only contradictory but also reflected a lack of consideration for the already struggling public including the legal fraternity. The SHCBA further urged the government to review and revise the petroleum prices in the greater public interest as prompt action in this regard is essential to provide relief to the masses and restore public confidence. Ishaq Tanoli in Karachi also contributed to this report Published in Dawn, April 4th, 2026
DawnApril 4, 2026 at 02:53 AM UTCTransporters raise fares by 30pc as ‘subsidy falls short’
• Prices of vegetables, fruits, construction materials, essential commodities also surge • Citizens, businesses reject fuel price increase despite provincial relief measures • LCCI warns of higher production costs, reduced export competitiveness LAHORE: Transporters have increased fares by up to 30 per cent following the recent fuel price hike, stressing that the government’s subsidy was insufficient to offset rising operational costs. Moreover, the record increase in petroleum prices has also caused a massive surge in the prices of vegetables, fruits, construction materials and several other items. On the other hand, the public at large has rejected the sharp increase in fuel prices despite some relief measures announced by the provincial governments. “Why has the government massively increased petroleum prices twice without considering how people, already burdened by inflation, will survive?” a motorist said while speaking to Dawn at a petrol pump in Gulberg on Friday. “From tomorrow onwards, I will stop using my car. It is better to stay at home,” he added. Another motorist expressed grave concern, alleging that the move benefited oil marketing companies (OMCs) and petrol pump owners, enabling them to earn billions of rupees within hours. “Announcing price increases abruptly and enforcing them immediately reflects poor intention on the government’s part, as it allowed OMCs and dealers to profit twice — once in early March and again late on Thursday night. Before the announcement, they already had sufficient stocks purchased at previous rates,” he claimed. The increase in petroleum prices has led to a considerable surge in transport fares and freight charges. “We have increased fares on all inter-city routes across the country by 25pc to 30pc with immediate effect,” said Asmatullah Niazi, chairman of the All Pakistan Bus Terminals Owners Association and Punjab Transport Owners Association. “Further decisions will be taken after a meeting with the transport minister in the coming days,” he added. Responding to a question about the Punjab government’s subsidy, he termed it insufficient. “The government has announced Rs100,000 and Rs70,000 per month for each registered bus and goods truck. Do you think this is enough when a single Lahore-Islamabad trip consumes diesel worth around Rs120,000?” he asked, requesting the Punjab government to review the subsidy decision. A construction material supplier said the impact of the price hike was immediate. “Freight charges have increased by up to 40pc, raising the cost of cement, crushed stone and other materials transported to Lahore from across Punjab and beyond,” he said, warning that further price increases are expected in the coming days. Meanwhile, prices of fruits, vegetables and other daily-use items also rose sharply. “Today (Friday), I bought vegetables at almost 40pc higher prices compared to Thursday. Similarly, flour, rice and other commodities have increased by 20pc to 40pc in the open market,” said a shopper. Several petrol pumps in Lahore reported a noticeable drop in customers on Thursday following the price hike. Reduced traffic was also observed on major roads, including Khayaban-i-Firdousi, Maulana Shaukat Ali Road, Canal Road, Ferozepur Road and Lytton Road. “This is the worst day in terms of sales I have seen since I started working here,” said a pump worker in Johar Town. Meanwhile, the Lahore Chamber of Commerce and Industry (LCCI) expressed serious concern over the increase in fuel prices, warning that it would adversely affect Pakistan’s economy, industrial productivity and cost of living. In a statement issued on Friday, LCCI office-bearers led by President Faheemur Rehman Saigol said the sharp rise in petrol and diesel prices would trigger a fresh wave of inflation. Mr Saigol warned that higher production costs could reduce competitiveness in export markets at a time when Pakistan needs to boost exports to stabilise its economy. Balochistan parties reject hike Political parties, goods transporters and the business community in Balochistan also rejected the massive increase in the prices of petroleum products and stressed that the federal government has paved the way for massive inflation. Talking to the media, Balochistan Goods Truck Owners Association Provincial President Haji Noor Muhammad Shahwani announced a 60pc increase in goods transport fares, saying the hike was unavoidable due to rising diesel prices. The National Party and Jamaat-i-Islami also strongly condemned the government’s decision to increase fuel prices. Saleem Shahid in Quetta also contributed to this report Published in Dawn, April 4th, 2026
DawnApril 4, 2026 at 02:37 AM UTCPetrol price drops to Rs378 as PM cuts levy amid backlash
• Shehbaz declares all cabinet members will forgo salaries for six months • New price effective from today • In late-night televised address, premier outlines reasons behind Thursday’s steep hike • Sindh, Punjab roll out targeted relief ISLAMABAD: Just a day after an unprecedented surge in petroleum prices, Prime Minister Shehbaz Sharif on Friday announced a major relief measure, slashing the petroleum levy by Rs80 per litre and bringing the price of petrol down to Rs378 per litre. In a late-night address to the nation, the prime minister also declared that all federal cabinet members would forgo their salaries for the next six months as part of austerity measures. His seven-minute televised address came after the unprecedented increase in petroleum prices sparked outrage from across the country. Explaining the earlier sharp increase in fuel prices amid the ongoing US-Israel war on Iran, the PM expressed hope that prices would return to pre-war levels once the conflict subsides. “The price of petrol had risen to Rs458 per litre. To ease the impact, I have decided to reduce the petroleum levy by Rs80 per litre, bringing the price down to Rs378,” he said. During his address to the nation, the prime minister outlined the reasons behind Thursday’s steep hike, when the government raised petrol prices by Rs137.23 per litre (42.7pc) to Rs458.41 and high-speed diesel (HSD) by Rs184.49 per litre (55pc) to Rs520.35, effective immediately. The price of kerosene was also increased by Rs34.08 per litre to Rs457.80. To manage the impact on transport and freight costs, the petroleum levy on petrol had earlier been raised to Rs160 per litre from Rs105, while it was reduced to zero on diesel. Alongside the price adjustments, the government introduced measures to cushion the public from global oil shocks, including early market closures and targeted subsidies for bikers, farmers, and transporters. On Friday, further relief steps were announced by both federal and provincial authorities. The government confirmed that train fares would remain unchanged, road taxes would not be increased, and free public bus services would be provided in the federal capital as well as in Punjab and Sindh. Earlier, Sindh and Punjab governments on Friday announced major relief measures to cushion the impact of rising fuel prices, including cash subsidies for motorcyclists, support for farmers and transporters and free public transport services on intra-city routes. Sindh Chief Minister Syed Murad Ali Shah on Friday announced a Rs55 billion relief and subsidy package, with a special focus on providing financial support to motorcycle owners affected by rising fuel prices. He made the announcement while addressing a press conference at the CM House alongside provincial ministers and Karachi Mayor Murtaza Wahab. The chief minister said the programme aims to support low-income individuals, especially those who rely on motorcycles for daily commuting. Under the scheme, around 6.7 million registered motorcycle owners in Sindh will receive Rs2,000 per month. This is equal to a subsidy of Rs100 per litre on up to 20 litres of fuel offering direct relief to millions of commuters. “To ensure smooth delivery, the Excise Department has introduced a digital registration system,” he said. “The motorcycle owners can sign up using their CNIC and bank account details. To make it further smooth, the motorcycle ownership transfers will be free for 15 days so that people can update their records and become eligible. After verification, payments will be transferred directly to bank accounts.” The chief minister said the recent increase in petroleum prices was necessary due to rising global oil prices caused by regional tensions, including the Iran conflict. He explained that Pakistan depends on imported fuel, and higher international prices are putting pressure on the national economy. He said that earlier, the government tried to control prices through a general subsidy but it increased fuel consumption and financial burden. Now, on the recommendation of international financial institutions, the government has shifted to a targeted subsidy system to support only the most deserving groups. The chief minister also announced a relief package for farmers and transporters. About 336,000 small farmers owning up to 25 acres will receive Rs1,500 per acre to cover diesel costs for wheat threshing. This payment will begin soon using existing verified data. He said that the transporters will also get financial support to prevent fare increases. Passenger buses, goods trucks and heavy transport vehicles will receive fixed subsidies while intra-city buses will get additional support due to higher fuel usage. Transporters will have to ensure that fares are not increased, he added. He said that the overall aim is to protect the public from inflation and reduce the impact of rising fuel prices on daily life. Punjab relief measures The Punjab government announced free public transport on intra-city routes across the province. “Citizens will not have to purchase tickets while travelling on public transport — Orange Line Train, Metro Bus Service, Speedo Bus and Green Electric Bus,” Punjab Chief Minister Maryam Nawaz said. In a post on her X account, chief minster said the surge in international oil prices amid ongoing global crises had led to a significant increase in petrol and diesel prices in Pakistan. “To safeguard our farmers, all wheat-growing farmers in Punjab with landholdings of up to 25 acres will receive a diesel subsidy of 10 litres per acre at Rs150 per litre. I stand firmly with each one of you and I am personally overseeing the implementation of this subsidy to ensure it remains transparent, effective, and reaches every deserving farmer without delay,” she said, adding that farmers were the backbone of Punjab. The chief minister also announced a subsidy for motorcyclists, under which every registered bike owner would receive a subsidy of Rs100 on 20 litres of fuel. She praised the prime minister for maintaining petroleum supply and prices for a month despite global pressures. “By providing relief worth billions of rupees within a month, PM Shehbaz Sharif has made a sincere and strong effort to protect the public from hardships,” she said. Under the initiative, registered goods transport vehicles will receive Rs70,000 per month, large vehicles Rs80,000 and public service buses Rs100,000 in subsidy. She urged transporters, particularly in Punjab, to support the public and refrain from passing on increased costs to passengers and consumers. She emphasised that the government would closely monitor the situation to ensure that relief reaches citizens in real terms. She termed the current situation a time for responsibility, compassion and solidarity, reaffirming the government’s commitment to protecting citizens from economic hardship. She also urged citizens to use public transport instead of private vehicles under the prevailing circumstances, adding that efforts would be made to ease the economic burden as conditions improve. Free transport in Islamabad Meanwhile, Interior Minister Mohsin Naqvi said in a post on X that, on the directives of PM Shehbaz, all public transport in Islamabad would be made free of cost for the next 30 days, starting Saturday. “The Ministry of Interior will bear the expenditure of Rs350 million for this public relief initiative,” he said. Imran Ayub in Karachi and Zulqernain Tahir in Lahore also contributed to this report Published in Dawn, April 4th, 2026
DawnApril 4, 2026 at 02:32 AM UTCPetrol price reduces to Rs378 per litre as govt cuts levy by Rs80
Prime Minister Shehbaz Sharif announced on Friday that the government was reducing the petrol levy by Rs80 per litre, after which the commodity would be available to the end consumer for Rs378 per litre. He said the new price would take effect at 12am on Saturday. The premier said this in a televised address to the nation a day after the government announced an unprecedented increase of 43 per cent and 55pc in the prices of petrol and high-speed diesel (HSD), respectively. Petroleum levy rates were adjusted to limit the increase in diesel prices — which stand at RsRs520.35 — and its impact on transportation and freight costs. The levy on petrol was increased to Rs160 per litre from Rs105, while it was reduced to zero on diesel from Rs55, sources had told Dawn. Consequently, the petrol price had increased to Rs458 per litre. The premier said after the reduction in levy, the petrol price would now reduce to Rs378 per litre and would remain unchanged for at least one month. The new price would be effective across the country, he added. He assured the federal and all four provincial governments would continue to work toward easing the difficulties being faced by the people at this “critical time”. He also said that previously it was decided that federal cabinet members would not receive their salaries for two months as part of the austerity measures taken by the government to deal with the fuel crunch. But now, the premier said, they would not get their salaries for six months. PM Shehbaz said that he had, however, not been able to consult the members of his cabinet on this decision due to “haste”. These developments have taken place amid a global fuel crisis resulting from the US-Israeli war on Iran, which began on February 28. After the war began, the government initially hiked petrol and diesel prices by Rs55 per litre on March 6 and announced unprecedented austerity measures on March 9 in the first steps to deal with the situation. On March 20, the PM said he had rejected an increase of Rs76 per litre in the price of petrol Rs177 per litre in that of HSD. The premier had also said that he had rejected a similar recommendation earlier as well, following a hike in oil prices in the international market on March 13. A week later, he again announced that he had rejected a third recommendation for an increase of Rs95 per litre in the price of petrol and Rs203 per litre in that of HSD since the war began. However, the government announced an unprecedented increase in the prices of the two products on Thursday, citing the rising oil prices in the international market. PM details challenges The PM had begun his address by detailing the impacts of the ongoing Middle East conflict. He said he was once again addressing the nation at a challenging time, with a war going on in the Middle East. And due to that war, oil prices had skyrocketed across the region, he said, adding that Pakistan had also been feeling the impact of the soaring prices. In these circumstances, he continued, the poor, the common man, and farmers were facing difficulties. He said he had tried his best to utilise the “national resources, which are limited”, to reduce those difficulties and for the public welfare. Reiterating that oil prices had soared in international markets, he said, adding that even big economies were struggling in the face of rising inflation. “Certainly, Pakistan is also badly affected by it,” he said. He added that he “did not find it appropriate to pass on the burden of the increase in oil prices to the people over the past three weeks” as he was aware of the difficulties of the common man. During the past three weeks, the government had spent Rs129 billion from national resources to cushion the impact of the rising oil prices, he said. The premier also said that he and Deputy Prime Minister and Foreign Minister Ishaq Dar, as well as Chief of the Defence Forces and Chief of Army Staff Field Marshal Asim Munir, had been making efforts for de-escalation in the Middle East and would continue to do so. He said the decisions announced on Thursday were taken after consultation with all provinces and other relevant parties, as well as leaders from Azad Jammu and Kashmir and Gilgit-Baltistan. PM Shehbaz then detailed decisions taken as part of the government’s targeted subsidy initiative, adding that they would also apply to AJK and GB.
DawnApril 3, 2026 at 07:46 PM UTCProvinces take the lead in doling out fuel subsidies following petrol price shock
ISLAMABAD: Coordinated by the Centre, the provincial governments will now be taking the lead in administering subsidised fuel quotas to motorcyclists, farmers and transporters, involving a fiscal impact of around Rs65-70 billion per month. On Thursday night, while announcing an unprecedented hike in the prices of petroleum products, the federal government had also announced targeted relief measures for motorcyclists, small farmers and transporters. To ensure national uniformity, the provincial chief ministers and their teams were in elaborate discussions on the nitty-gritty with the Centre over the past week. Based on that, Finance Minister Muhammad Aurangzeb announced Rs70,000, Rs80,000 and Rs100,000 per month to food transport vehicles, large trucks and public service buses, respectively. In addition, support of Rs1,500 per acre was also announced for small farmers, given the central priority to minimise food inflation. The announcements were based on elaborate datasets from the provincial governments and their district administrations, who will arrange their distribution and administration from their own resources, as the Centre’s fiscal space has been exhausted to the International Monetary Fund’s (IMF) limit of tolerance — about Rs154 billion so far. Altogether, the provinces are pooling around Rs200bn for three months on the pattern of their National Finance Commission (NFC) shares – Rs100bn or so from Punjab, Rs51-52bn from Sindh, Rs15bn from Khyber Pakhtunkhwa and about Rs8-9bn from Balochistan. The two larger provinces – Punjab and Sindh – have, in fact, insisted on passing on international prices to general retail prices so that they can provide targeted relief to priority areas and the vulnerable. Punjab Background discussions with government officials indicate that Punjab will be spending about Rs35bn a month to provide a subsidy of Rs100 per litre to 22 million bikers, including 11 million 70cc bikers, and more than 765,000 goods transporting vehicles, besides intercity public service transport. Most of them are registered with excise departments and are, as a result, accessible to district authorities. Of this, around Rs10bn is estimated for bikers, Rs7bn for inter-city goods and public transport and Rs18bn for farmers. Punjab has reported that more than one million farmers have Kissan Cards, and total wheat sowing has been reported over 16 million acres. It has been reported that it has digital access to goods transporters and farmers through Kissan cards, digital accounts or cash vouchers. Sindh Pakistan’s second-largest province in terms of population has reported that 6-7 million bikers will be provided with support, through mobile apps and other digital means, involving about Rs12bn a month at the rate of about Rs2,000, i.e. Rs100 per 20 litres per person. The province reportedly has more than 400,000 farmers, who can be reached through Hari Cards; support of Rs1,500 per head will be provided to small farmers with land holdings of under 25 acres. Sindh, which will be coughing up about Rs15-18bn per month burden, had proposed using Benazir Income Support Programme (BISP) cards as well for doling out subsidies to farmers and transporters in addition to Hari Cards. However, Punjab did not agree, saying it had made its own detailed arrangements through elaborate datasets in all fields and was ready to roll them out. Khyber Pakhtunkhwa The PTI-governed province is already in its implementation phase. It had announced a Rs2,000 per month subsidy to bikers ahead of the programme. It has more than 1.6 million bikers with a Rs5bn monthly fiscal impact on top of another Rs6-7bn it needs for other sectors. Balochistan Balochistan’s preparedness is not only lacking in its current state but is also challenging in the days ahead. It reported that its data availability for registered vehicles is limited only to 6-7 districts. It is evident that unregistered bikers and transporters, whether in Balochistan or elsewhere, will not be able to benefit from the subsidy schemes, although Balochistan has promised that it could utilise BISP data and could only subsidise agriculture. Mobile app On the other hand, the Centre is expecting the rollout of a mobile app for providing the subsidised fuel quota to bikers by next week, funded by the provinces. Instead of earlier suggestions for the inclusion of three-wheelers and small cars, the subsidy scheme has been restricted to two-wheelers. The technical and hardware details of the quota-based system have been tested and finalised by the Oil and Gas Regulatory Authority (Ogra) and the ministries of finance, petroleum and information technology. The Ministry of Information Technology, in coordination with relevant agencies, had already ordered the procurement of 24,000 mobile sets to be provided two each at all the 12,000 registered petrol stations across the country. Neither the federal nor provincial government is sharing the cost of mobile sets; oil marketing companies (OMCs) will be providing these cellular sets to their retailers with a reporting mechanism tied to Ogra. The specialised phones are estimated to cost about Rs36,00 per unit – meaning Rs72,000 per station. Petrol stations and OMCs are required to deposit funds into a designated government account to ensure immediate delivery of devices. Biker/customer-based quotas of 20 litres will be linked to the user’s app via a registration number and their computerised national identity card (CNIC). The users will generate a digital voucher through the app, while the retailers will scan or enter the voucher in their app, leading the system to auto-validate the available quota. Retailers and petrol stations will be required to dedicate specific dispensers or nozzles for 2-wheelers to facilitate subsidised fuel distribution. All OMCs will be required to appoint focal persons for each retail site for seamless operations of the scheme and provide their contact details to the Ogra for round-the-clock monitoring of the scheme at the outlet stage across the country for avoidance and redressal of consumer complaints. The details of focal persons, including name, mobile phone numbers and CNIC, will also be available to Ogra. For implementation and oversight, the details of retailers’ focal persons and contact numbers would also be provided to OMCs and the petroleum division as well. The IT ministry will provide demos and video tutorials on operating the system. In case of emergencies, a dispensation system would be made available for approvals through a designated process.
DawnApril 3, 2026 at 04:08 PM UTCSanaullah says petrol prices increased as a consequence of Middle East war, govt has ‘nothing to do with it’
Prime Minister’s Adviser on Political Affairs Rana Sanaullah on Friday said that the prices of petroleum products had increased due to the ongoing war in the Middle East, adding that the government “has nothing to do with it”. His remarks come a day after an unprecedented increase of 43 per cent and 55pc in the prices of petrol and high-speed diesel (HSD), respectively, to cushion the impact of global oil price shocks amid the US-Israel war on Iran. The decision was heavily criticised by the government’s opponents. In a televised address, Sanaullah said that there was no example of such an increase in global petroleum prices in the past. “This rise is also hitting Pakistan, that’s why we increased petrol and diesel prices yesterday,” he said. He said that before announcing the hike in prices, the government undertook major austerity measures. “The government spent Rs129 billion and didn’t allow the burden to pass on to the public for the past three weeks,” he said. However, this could not go on forever, he said. The PM’s adviser said that yesterday, Prime Minister Shehbaz Sharif held detailed consultations with the country’s political leadership and decided to provide a targeted subsidy, instead of a blanket cover for all. He said that the government decided to give a Rs100 subsidy on petrol for motorcyclists and a Rs1,500 subsidy per acre for farmers as the harvesting season was approaching. Sanaullah said that the government also gave Rs70,000 and Rs80,000 subsidies for goods transporters as per their capacity. He said that the government was also giving a Rs100,000 subsidy to transporters. “We did this so they won’t increase the fares, that’s how we are supporting the common man and the needy,” he stated. “The prices rose due to the war in the Middle East. The government had nothing to do with it. Everybody knows who started the war,” he asserted. He went on to say that some people were carrying out propaganda and inciting the public to protest against the government. “Those people are not talking about the austerity measures taken by the government and the subsidies it announced; they are pushing their own political agenda,” Sanaullah said. He said that there were countries where people were not able to get petrol and diesel. “This is the result of the government’s efforts that petrol and diesel are available for the public,” he said. Referring to the opposition, he said that they should come and appreciate the government’s initiatives and assist it in taking things forward. “Come and give your suggestions and empower the government to play its role in stopping this war,” he said. He also called on the opposition to stop misleading people about the government. “The government didn’t raise the prices; it tried to keep the prices low.” Sanaullah declared that if someone wanted to protest, they should protest against Israel for waging the war on Iran. “We need to strengthen our country and have to forego the political goals. If this war continues for the next three to four months, we may have to face an even worse situation,” he warned. The PML-N leader called on the people to face this crisis like a resilient, brave and determined nation. “Those misleading people for their personal and political gains should know that the government has nothing to do with this hike; we are making our best efforts to stop the war,” he said. “There should be no division amongst us; we need unity to bring ourselves out of this turmoil.” Separately, Defence Minister Khawaja Asif also said in a post on X that the hike in petrol and diesel prices was a consequence of the US-Israeli war on Iran and that it was “not just one country’s decision”. “Oil-producing Muslim countries, or countries through which oil [shipments] pass to reach the rest of the world, are all facing the impacts of Israel’s genocidal frenzy against Muslims,” he said. The defence minister highlighted that several countries were facing fuel shortages while ensuring that the supply was not disrupted in Pakistan had been a “big challenge”. He said the government tackled this challenge successfully and ensured that there was no shortage. But, he added, “a balanced approach was necessary so that the country could be saved from a severe financial crisis. The price[s] have been increased due to severe fiscal pressures”. Asif said the government was aware of people’s difficulties and the Centre and provinces had made deferred development and other spending to contribute to oil prices. “As soon as the situation improves, people will be provided relief,” he assured. PTI plans all-parties conference Addressing a press conference in Islamabad, PTI Chairman Gohar Khan said that petrol was a commodity that had “no alternative”. He said that an increase in its price had an effect on the poor and farmers. He said that there was no doubt that the Middle East war had caused a global increase in prices. He said that the increase in prices of petroleum products in Pakistan had surpassed those in countries such as Vietnam and Nigeria. He also said that the government had not taken Parliament into confidence regarding its efforts for peace amid the ongoing war. He further said that the government was unable to control the hoarding and smuggling of petroleum products and was passing on the burden of the petroleum levy to the public. In his remarks, he also said that the PTI would call an all-party conference over the price hike. He said that “like-minded” parties would attend. PTI leader Taimur Saleem Jhagra, who was also present for the press conference, lashed out at the government for raising the prices of fuel, saying, “The petrol bomb was dropped earlier … [now the current price hike is] adding fuel to the fire”. “The prime minister announces holding back the prices of fuel on his own, while he sends his ministers to announce an increase in the prices,” he said. “The prime minister should have come and taken the nation into confidence on the price hike, but he cannot face people,” he said. JI warns of nationwide protest movement Meanwhile, Jamaat-i-Islami chief Hafiz Naeemur Rehman said that if the government did not withdraw the hike, the party would launch a nationwide movement where even the chief ministers’ houses would be surrounded. He issued these remarks while addressing the public committee’s convention in Lahore’s Mansoora and a large protest demonstration against petroleum prices on Multan Road, a statement issued by the party’s information secretary said. According to the statement, “Rehman warned the government that if it does not withdraw the increase in petroleum prices, the party will launch a nationwide protest movement. “He warned that chief ministers’ houses in all four provinces would be surrounded and a countrywide strike would be observed,” it said. Rehman said that the government was collecting over Rs200 per litre in taxes on petrol, terming it an exploitative measure that was draining the public. He demanded an immediate reduction in the prices of petrol, diesel, and electricity. Criticising the government, the JI chief said rulers were using global crises as an excuse to burden the masses, questioning why relief was not passed on when international oil prices had dropped significantly in the past. He also took aim at the lavish lifestyle of the ruling elite, extravagant spending on official vehicles, aircraft, and perks, while ordinary citizens struggled with inflation. Additional input from Ahmad Fraz Khan
DawnApril 3, 2026 at 02:22 PM UTC