Prime Minister Shehbaz Sharif on Thursday approved a one-month extension in subsidies for motorcyclists, goods transporters, and public transport operators, reiterating the government's commitment to providing relief to the masses amid persistently high fuel prices resulting from Middle East tensions.
Background of Fuel Price Hike
Pakistan raised petrol prices in March and April as the conflict in Iran pushed global oil prices above $100 per barrel. The country, which imports most of its crude oil from the Middle East, has faced volatility in global energy markets due to disruptions in supply routes, especially through the Strait of Hormuz, a critical artery for global oil shipments.
Details of the Subsidy Extension
The government had previously announced a subsidy of Rs100 ($0.36) per liter for motorcyclists, capped at 20 liters per month. For transport operators, subsidies included up to Rs70,000 ($252) per month for freight trucks, Rs80,000 ($288) for larger transport vehicles, and Rs100,000 ($360) per month for public passenger buses. The Prime Minister's Office (PMO) stated that the extension applies to these categories.
Government Directives
PM Sharif directed authorities to prevent any increase in fares for passenger and freight transport. He urged effective monitoring of relief initiatives to ensure that deserving individuals benefit from them. “Providing relief to ordinary citizens remains the government’s top priority, and the public will not be left alone under any circumstances,” Sharif was quoted as saying.
Outlook on Regional Situation
The prime minister expressed hope that the regional situation would improve soon, leading to stability in petroleum product prices. The government has attempted to provide broad protection to consumers but, with no end in sight to the conflict and constrained resources, has had to pass on the increase in prices in line with international market movements.
