Pakistan Trims Petrol Hike, Pledges Rs129 Billion in Targeted Relief

Overview

• After a public outcry, the government cut an initial Rs137-per-litre jump and set petrol at Rs378 per litre following the prime minister’s intervention.
• A targeted package offers free public transport for commuters in Punjab and Islamabad and proposes cash support for registered motorcycle owners in Sindh.
• The federal plan includes Rs100 per litre for motorcycle users on up to 20 litres a month and a one-time Rs1,500 per acre payment for small farmers.
• Freight and passenger transport will get monthly support, including Rs70,000 for goods vehicles and up to Rs100,000 for inter-city and public service buses.
• The prime minister cites a Rs129 billion fiscal cost, while analysts say prices track global oil and the rupee on an import-parity basis, so the relief is only a short bridge to longer-term energy and macro reforms.