Pakistan’s government has declared that public transportation in Punjab and Islamabad will be free of charge starting April 4, in response to a significant increase in fuel prices. The recent hike in petrol and diesel prices, marking the second raise in less than a month, has seen diesel prices surge by 54.9% to 520.35 Pakistani rupees per liter and petrol prices rise by 42.7% to 458.40 Pakistani rupees per liter.
This spike in fuel costs triggered widespread protests in Pakistan and lengthy queues at fuel stations. Interior Minister Mohsin Naqvi announced complimentary travel on state-operated public transport in Islamabad for a month, with the government covering a substantial cost of 350 million Pakistani rupees. Likewise, the Punjab Chief Minister unveiled plans for free travel and targeted subsidies for buses and trucks, urging transport providers to refrain from fare increases and pledging financial assistance once conditions improve.
In Sindh, the Karachi provincial government disclosed subsidies for motorcyclists and small-scale farmers to alleviate the impact of escalating fuel expenditures. Critics have lambasted the government for the abrupt fuel price surge, labeling it a significant burden on a populace already reeling from the repercussions of the economic turmoil.
Pakistan has been implementing austerity measures to conserve fuel amidst the global crisis, including the introduction of a four-day workweek for government entities, universities, extended school holidays, and online classes by the Shehbaz Sharif cabinet. Despite these efforts, protests persist in various cities, such as Lahore, where residents are demanding a rollback of the fuel price hike.
The International Monetary Fund recently brokered an initial agreement with Pakistan to extend a support package worth USD 1.2 billion to the country. The ongoing Iran conflict and the blockade of the Strait of Hormuz have exacerbated the global fuel crisis, resulting in soaring price levels worldwide.