Islamabad — In a late-night address, Prime Minister Shehbaz Sharif announced a PKR 80 per litre cut in the petrol levy, lowering the retail petrol price to PKR 378 per litre. The reduction takes effect at midnight and, the prime minister said, the price will remain unchanged for at least one month.
The announcement followed widespread public backlash after the government earlier implemented a steep increase in fuel prices. On Thursday petrol and high-speed diesel (HSD) were raised sharply — petrol jumped from PKR 321.17 to PKR 458.41 per litre after the levy rose from PKR 105 to PKR 160 per litre. HSD climbed by PKR 184.49 to PKR 520.35, while its levy was abolished, prompting demands for comparable relief on petrol.
Sharif attributed the recent volatility to supply disruptions in the Gulf region and higher global crude prices, saying his administration had sought to protect citizens from inflation through careful resource management. As part of wider austerity steps, he extended a prior decision to withhold federal cabinet members’ salaries: ministers will now forgo pay for six months instead of the earlier two-month measure.
The prime minister also announced targeted support measures for groups most affected by the fuel shock: a PKR 100 per litre subsidy for motorcycle users; one-time payments of PKR 70,000–80,000 for goods transport vehicle owners; PKR 100,000 for passenger vehicle owners; and PKR 1,500 per acre for small farmers. He added that Pakistan Railways would not increase economy-class fares. Sharif said these measures will apply to Pakistan‑occupied Kashmir and Gilgit‑Baltistan and that necessary resources would be allocated to implement the relief.
The government had previously absorbed rising costs by distributing roughly PKR 129 billion in subsidies and kept pump prices unchanged for about three weeks before making the recent adjustments. The fuel-price swings and the subsequent cut come amid broader regional tensions that have disrupted shipping through key routes and pushed up global oil prices.
