PM orders suspension of 25% toll tax hike amid rising fuel prices

وزیراعظم پاکستان شہباز شریف کی خصوصی ہدایات پر عملدرآمد کرتے ہوئے، وفاقی وزیر مواصلات عبدالعلیم خان کی جانب سے ٹول ٹیکس میں 25 فیصد سہ ماہی اضافے کو فوری طور پر واپس لینے کا باضابطہ اعلان۔ ملک کی موجودہ اقتصادی صورتحال کے پیشِ نظر​ وزارت نے مالی سال 26-2025 کے لیے ٹول ٹیکس میں… pic.twitter.com/ntB0QQv7Mk

The post states that the toll rates revision, expected to increase by 25 per cent, has been withdrawn with immediate effect. "In view of the current economic situation of the country, the ministry has not increased the toll tax for the fiscal year 2025-26 to ensure continuous support and relief to the people," read the post.

Communication Minister Abdul Aleem Khan instructed the NHA to withdraw its notification, stating that “under the current circumstances, an additional burden cannot be imposed on citizens.” The minister added that the increase in toll tax, originally scheduled for April 5, had been suspended and a new notification issued.

He further emphasised the government’s priorities, saying: “On the prime minister’s instructions, we must do whatever we can to ease public hardships. The situation is challenging, but the nation can face it together.” No toll plaza fee increase had been applied during the 2025-26 financial year.

The government on Thursday further increased petrol prices by Rs137 per litre, or 43%, to a record-high of Rs458.4, after Prime Minister Shehbaz Sharif decided to impose more taxes on consumers.

Read: Oil tanker contractors threaten halt of tankers after sharp fuel price hike

The Rs458.4 per litre new price of petrol is also far higher than the increase in the international market, as PM Shehbaz decided to increase the petroleum levy to a record Rs160.61 per litre on petrol. With one stroke of a pen, the premier increased the petroleum levy on petrol from Rs106 to Rs161 per litre — an increase of Rs55 in taxes.

It was the second major increase in the fuel prices in less than a month after PM Shehbaz increased the diesel and petrol prices by Rs55 per litre or 20%. The cumulative increase in the petrol price within a month stands at 63%, and that of the high-speed diesel at 75%.

Transporters raise fares

Public transport and goods carriers have sharply raised fares in response to rising petroleum prices. The Pakistan Goods Transporters Association announced up to 65% increases in fares, affecting intercity travel and freight.

For passengers, the increases are significant: Lahore to Karachi fares have risen from Rs110,000 to Rs180,000, Lahore to Islamabad from Rs80,000 to Rs120,000, and Lahore to Peshawar from Rs100,000 to Rs150,000. Local intercity bus fares have also surged, with Lahore to Islamabad increasing from Rs3,000 to Rs4,000, and Lahore to Karachi from Rs8,600 to Rs12,000.

Passengers voiced frustration at the escalating costs. One commuter said, “In this era of inflation, even travelling by public transport has become difficult. Living is hard enough, and travelling adds another burden.”

Read more: Govt increases petrol tax to Rs161 per litre, sets new price at Rs458 per litre

Transporters defended the fare hikes, citing rising operational costs. A spokesperson noted, “Petrol and diesel prices have gone up, spare parts are more expensive, and if we do not increase fares, we will be forced to stop running vehicles. Operating in these conditions has become extremely difficult.”

The central president of the Pakistan Goods Transporters Association, Nabeel Tariq Mahmood, echoed the sentiment, saying: “The steep rise in diesel prices has disrupted business. Operating under these conditions is very challenging.”

The most shocking action of the government was to increase the petroleum levy rate to Rs161 per litre on petrol to raise additional funds for cross-subsidising the diesel prices. The government outsourced the state’s core function to protect its citizens to the petrol consumers.