Pakistan slashes petrol price by PKR 80 after sharp hike backlash
Pakistan slashes petrol price by PKR 80 after sharp hike backlash
After an unprecedented petrol surge, Pakistan trims the levy by PKR 80, lowering the pump price to PKR 378 per litre for now.
After an unprecedented 43% hike in petrol and a 55% jump in high-speed diesel, Pakistan's government faced sharp backlash. In a midnight address on April 3, Prime Minister Shehbaz Sharif announced an immediate cut, reducing the petrol levy by PKR 80 per litre and bringing the consumer price to PKR 378 per litre. The new rate will take effect at midnight and is said to remain unchanged for at least one month.
The prior surge had lifted the petrol price from PKR 321.17 to PKR 458.41 per litre, with the government levy rising from PKR 105 to PKR 160 per litre. The diesel price rise hit even harder, but officials had previously abolished the diesel levy in an attempt to cushion inflation, prompting calls for similar relief on petrol.
Sharif noted that Gulf region energy dynamics contributed to the spike but said the government was working to shield citizens from the inflation storm through careful savings and prudent resource use. He also reminded the public of austerity steps, mentioning that federal cabinet members had agreed to forgo salaries for two months, with the plan later extended to six months as part of broader belt-tightening.
Analysts say the move signals a policy balancing act amid IMF pressure and global energy volatility. While the relief could ease transport and consumer costs in the short term, critics warn that price volatility may resume and longer-term relief will require sustained reforms and steadier energy supplies.
