PM announces Rs80 cut in petroleum levy, lowering petrol price to Rs378 per litre

Says the reduction would remain in effect for at least one month and would be applicable nationwide from midnight

Prime Minister Shehbaz Sharif on Friday announced a Rs80 per litre reduction in the petroleum levy on petrol, a day after prices were raised by Rs137 per litre, saying the move would bring the petrol price down to Rs378 per litre.

The announcement came a day after the government raised the petrol price by Rs137 per litre, taking it to a record high of Rs458.4. PM Shehbaz had decided to increase the petroleum levy on petrol to Rs160.61 per litre, marking the highest level in history. With a single notification, the premier raised the levy from Rs106 to Rs161 per litre, an increase of Rs55 in taxes.

The government also pushed the price of high-speed diesel to a record Rs520.35 per litre, an increase of Rs185 per litre, or 55 per cent. However, the prime minister abolished the petroleum levy on high-speed diesel, retaining only a Rs2.5 per litre carbon levy in addition to all import duties.

Addressing the nation in a late-night speech on Friday, the prime minister said he was speaking at a time when conflict in the Gulf had led to soaring fuel prices across the region, with a sharp increase in oil prices also affecting Pakistan.

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

Described the situation as a “harsh reality”, he said it was dimming the kitchen fires of the poor, creating immense difficulties for farmers, and posing new challenges for ordinary citizens.

PM Shehbaz said the government had made every possible effort to utilise limited national resources to promote public welfare and reduce the difficulties faced by citizens. “Through careful savings and prudent use of resources, we tried to shield you from the storm of inflation,” he added.

He said that international oil prices had witnessed a massive increase, while inflation had also affected even the world’s strongest economies, adding that Pakistan was likewise being severely impacted.

“Over the past three weeks, I did not consider it appropriate to pass on the daily increase in oil prices to the public, as I am fully aware of the challenges faced by the common man in making ends meet,” the premier said.

According to the announcements made, the prime minister said a subsidy of Rs100 per litre would be provided for motorcycle users. He added that to support goods transport, a subsidy would be extended for one month, under which small trucks would receive Rs70,000, large trucks Rs80,000, and public transport buses Rs100,000, in an effort to prevent an increase in the prices of essential commodities and fares.

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“For small farmers, financial assistance of Rs1,500 per acre has been announced,” he said, adding that a decision had also been taken regarding Pakistan Railways to ensure that fares for economy class passengers would not be increased. “In this regard, clear directives have been issued to the Ministry of Railways,” he added.

He added that the announced measures would also be implemented in Gilgit-Baltistan and Azad Kashmir, for which the government would provide all necessary resources.

The prime minister thanked the chief ministers of all provinces for committing their resources, saying it was the need of the hour. “Such a major challenge can only be tackled through national unity, cohesion and consensus,” he said.

The premier assured the nation that the government would not rest until normalcy was restored. “We will continue our efforts until you are able to return to your daily lives with peace and stability, and for this, all available resources will be utilised,” he said.

Announcing a key relief measure, the prime minister said that the petrol price, which had been increased to Rs458 per litre a day earlier, would be reduced through a cut in the petroleum levy. “I am announcing an immediate reduction of Rs80 per litre in the petrol levy,” he said, adding that the new price of Rs378 per litre would take effect from midnight, with petrol available at the revised rate at pumps across the country.

He said the reduction would remain in effect for at least one month and would be applicable nationwide from midnight.

PM Shehbaz said that he and his government, in coordination with provincial administrations, would continue efforts to ease the burden on citizens. “By the grace of Allah, we will take every necessary step required at this critical juncture,” he added.

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He also announced that, in order to provide relief to the public, the salaries of cabinet members — which were earlier pledged to be deposited into the national exchequer for two months — would now be contributed for a period of six months.

The prime minister said that while the amount might appear modest, it reflected a sincere effort to ensure that every possible saving was utilised to prevent further burden on the public. “Wherever savings can be made, we will secure them to ensure that your difficulties do not increase,” he said.

Expressing optimism, he concluded that the country would soon witness progress, prosperity, the eradication of poverty, and Pakistan’s overall development.