PM Shehbaz cuts petrol price to Rs378 after levy reduction

Prime Minister Shehbaz Sharif announced a major reduction in the petrol price, bringing it down to Rs378 per litre for one month after a sharp public backlash to the government’s earlier increase. The announcement came during a televised address in which the premier said the decision was intended to ease pressure on households and businesses already struggling with inflation and rising transport costs.

The revised rate is to take effect from 12am on Saturday, replacing the newly announced price that had pushed petrol to a record level after a dramatic jump of Rs137.23 per litre. The government had also raised the price of high-speed diesel by Rs184.49, a move that immediately triggered anxiety across transport, agriculture and retail sectors because diesel costs feed directly into freight and food prices.

In his address, the prime minister linked the price shock to the wider turmoil in the Middle East and the rapid rise in international oil prices. He said the regional conflict had unsettled energy markets and created economic difficulties not only for Pakistan but for many countries dependent on imported fuel. By cutting the petroleum levy by Rs80 per litre, the government attempted to soften the blow without completely reversing its earlier pricing decision.

Sharif said the world economy was already under strain and that ordinary Pakistanis could not be left alone to absorb the full effect of global price volatility. His remarks were framed as both an explanation and a reassurance, with the government trying to show that it understood the public anger that followed the increase. The speech also signaled that the administration wanted to move quickly to contain the political fallout from one of the steepest fuel adjustments in recent years.

The fuel issue has become especially sensitive because petrol prices in Pakistan influence far more than private commuting. Any substantial increase tends to affect intercity transport fares, goods movement, delivery costs and broader inflation expectations. Even before the reduction was announced, business groups, opposition parties and social media users were warning that the earlier hike would further weaken consumer purchasing power and add to living-cost pressures.

Pakistan’s recurring fuel vulnerability stems from its heavy reliance on imported petroleum and exposure to external price shocks. Whenever geopolitical tensions tighten global supply or increase shipping risk, domestic consumers feel the impact quickly. Governments often face a difficult balance between maintaining fiscal commitments, preserving revenue and protecting the public from sudden surges in essential costs.

The latest reversal also fits into a wider pattern in which major energy decisions are now judged not only on budgetary grounds but on their social consequences. With inflation still a central political issue, even a technically justified increase can become unsustainable if it threatens transport, agriculture and small business activity all at once. By stepping in publicly, the prime minister signaled that fuel pricing had moved from an administrative matter to a top-level political concern.

For now, the temporary reduction gives the government some breathing space, but it does not remove the underlying problem of Pakistan’s dependence on imported energy. The next phase will depend on developments in global oil markets, the durability of the government’s fiscal room and whether further relief can be sustained without creating new financial pressure elsewhere in the economy.