Pakistan Cuts Petrol Prices, Offers Free Transport After Outrage Over Fuel Hike

Last Updated:April 04, 2026, 10:28 IST

The government had earlier raised petrol prices by 42.7 per cent to 485 rupees per litre, triggering public anger and long queues at fuel stations.

Days after sharply increasing fuel prices, Pakistan’s government led by Prime Minister Shehbaz Sharif has reduced petrol rates and announced relief measures following widespread protests.

The government had earlier raised petrol prices by 42.7 per cent to 485 rupees per litre, triggering public anger and long queues at fuel stations. Late on Friday, Sharif reversed course and said petrol prices would be reduced to 378 rupees per litre. He added that the revised rate would remain in place for at least one month.

“I promise I will not rest until your life is back to normal," Sharif said in a televised address. However, diesel prices were not reduced and remain at 520 rupees per litre after a 54.9 per cent increase.

Free public transport announced

In a major relief measure, the government announced that public transport in Islamabad will be free for 30 days starting Saturday. Interior Minister Mohsin Naqvi said the move would cost the government 350 million rupees.

Punjab Chief Minister Maryam Nawaz Sharif also announced free travel on state-run public transport in the province and introduced targeted subsidies for trucks and buses. She urged transport operators not to pass on increased costs to passengers and said efforts would be made to reduce the economic burden on people.

In Sindh, including Karachi, authorities announced similar subsidies for motorcyclists and small farmers.

Protests over rising costs

The sharp fuel price hike led to protests, including demonstrations in Lahore. Protesters criticised the government’s decision, with one describing it as a “petrol bomb" on the public.

Another protester said the country could not bear such inflation and called for immediate relief. Some also blamed pressure from the International Monetary Fund, urging the government to resist such demands.

Fuel crisis due to Iran war

The fuel crisis comes amid the ongoing conflict involving Iran, which began on February 28. The situation has disrupted shipping through the Strait of Hormuz, a key route through which about one-fifth of the world’s energy supplies pass.

This disruption has affected fuel availability and prices in several countries, including Pakistan.

To manage the crisis, the government has introduced several fuel-saving measures. These include shifting many government offices to a four-day workweek, extending school holidays and moving some classes online.

Pakistan, a lower-middle-income country with around 25 per cent of its population living in poverty, has been under pressure due to rising energy costs. The government had earlier increased fuel prices by 20 per cent in March and tried to avoid further hikes before the latest decision.

Other Asian countries are also facing similar challenges. Bangladesh recently raised prices of cooking gas and compressed natural gas by 29 per cent.

The International Monetary Fund has warned that countries like Pakistan face not only higher energy costs but also supply chain disruptions. It also announced a preliminary agreement to provide Pakistan with a $1.2 billion support package.

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