Prime Minister Shehbaz Sharif, in a late night video statement on Friday, slashed the petroleum development levy (PDL) on petrol by Rs. 80/liter a day after the government had imposed a massive hike to fuel products.
On Thursday night, in a joint video statement, federal ministers Ali Pervaiz Malik and Muhammad Aurangzeb had announced that the prices of petrol and diesel were being raised to Rs. 458.41/liter and Rs. 520.35/liter, respectively, amidst the ongoing Iran war. The announcement had waived all PDL on diesel, while boosting the same on petrol to Rs. 160/liter. The massive hike, Rs. 138/liter on petrol and Rs. 184/liter on diesel, had triggered outrage, with citizens demanding the government cut taxes to offset the looming inflationary pressures arising from the situation.
In his address, the prime minister stressed the government was committed to easing the financial burdens on the public amidst soaring global oil prices. Announcing an immediate reduction of Rs. 80/liter in the PDL for petrol, he reduced its price to Rs. 378/liter, effective from midnight. He said this cut in PDL would continue for a month.
Additionally, Sharif reiterated relief measures previously announced, including a subsidy of Rs. 100/liter for motorcyclists on up to 20 liters. He noted fixed monthly subsidies for transport sectors, including Rs. 70,000 for small trucks, Rs. 80,000 for large trucks, and Rs. 100,000 for public transport buses. All these measures, he emphasized, aimed to offset inflationary pressures on essential commodities and transport fares.
For the agricultural sector, the prime minister said the government would provide financial assistance of Rs. 1,500/acre for small farmers to help them cope with rising input costs. He said the government would maintain the fares for economy class passengers of Pakistan Railways.
In a gesture of solidarity, Sharif said the members of the federal cabinet would deposit six months’ salaries into the national exchequer.
During his address, the prime minister noted the ongoing Middle East conflict had resulted in massive hikes to oil prices, impacting economies globally. He acknowledged the resulting inflation will prove punishing for ordinary citizens, making it difficult for them to meet daily needs. He recalled the government had provided a Rs. 129 billion subsidy for three weeks to shield the public from the full impact of rising oil prices, but said this was not sustainable in the long term.
He said the government had no choice but to raise fuel prices, but had devised relief measures after extensive consultations with the national leadership, provincial chief ministers, and other key stakeholders. He thanked the provinces for their commitment and support, stressing national unity and collective efforts are essential to overcoming the current economic challenges.
He further assured the public that the relief measures would apply nationwide, including in Gilgit-Baltistan and Pakistan-administered Kashmir. He vowed the government would continue working tirelessly until stability is restored and citizens can return to normal life, adding all available resources would be utilized to provide maximum relief to the public.