• Shehbaz declares all cabinet members will forgo salaries for six months
• New price effective from today
• In late-night televised address, premier outlines reasons behind Thursday’s steep hike
• Sindh, Punjab roll out targeted relief
ISLAMABAD: Just a day after an unprecedented surge in petroleum prices, Prime Minister Shehbaz Sharif on Friday announced a major relief measure, slashing the petroleum levy by Rs80 per litre and bringing the price of petrol down to Rs378 per litre.
In a late-night address to the nation, the prime minister also declared that all federal cabinet members would forgo their salaries for the next six months as part of austerity measures.
His seven-minute televised address came after the unprecedented increase in petroleum prices sparked outrage from across the country.
Explaining the earlier sharp increase in fuel prices amid the ongoing US-Israel war on Iran, the PM expressed hope that prices would return to pre-war levels once the conflict subsides.
“The price of petrol had risen to Rs458 per litre. To ease the impact, I have decided to reduce the petroleum levy by Rs80 per litre, bringing the price down to Rs378,” he said.
During his address to the nation, the prime minister outlined the reasons behind Thursday’s steep hike, when the government raised petrol prices by Rs137.23 per litre (42.7pc) to Rs458.41 and high-speed diesel (HSD) by Rs184.49 per litre (55pc) to Rs520.35, effective immediately.
The price of kerosene was also increased by Rs34.08 per litre to Rs457.80.
To manage the impact on transport and freight costs, the petroleum levy on petrol had earlier been raised to Rs160 per litre from Rs105, while it was reduced to zero on diesel.
Alongside the price adjustments, the government introduced measures to cushion the public from global oil shocks, including early market closures and targeted subsidies for bikers, farmers, and transporters.
On Friday, further relief steps were announced by both federal and provincial authorities. The government confirmed that train fares would remain unchanged, road taxes would not be increased, and free public bus services would be provided in the federal capital as well as in Punjab and Sindh.
Earlier, Sindh and Punjab governments on Friday announced major relief measures to cushion the impact of rising fuel prices, including cash subsidies for motorcyclists, support for farmers and transporters and free public transport services on intra-city routes.
Sindh Chief Minister Syed Murad Ali Shah on Friday announced a Rs55 billion relief and subsidy package, with a special focus on providing financial support to motorcycle owners affected by rising fuel prices.
He made the announcement while addressing a press conference at the CM House alongside provincial ministers and Karachi Mayor Murtaza Wahab. The chief minister said the programme aims to support low-income individuals, especially those who rely on motorcycles for daily commuting.
Under the scheme, around 6.7 million registered motorcycle owners in Sindh will receive Rs2,000 per month. This is equal to a subsidy of Rs100 per litre on up to 20 litres of fuel offering direct relief to millions of commuters.
“To ensure smooth delivery, the Excise Department has introduced a digital registration system,” he said. “The motorcycle owners can sign up using their CNIC and bank account details. To make it further smooth, the motorcycle ownership transfers will be free for 15 days so that people can update their records and become eligible. After verification, payments will be transferred directly to bank accounts.”
The chief minister said the recent increase in petroleum prices was necessary due to rising global oil prices caused by regional tensions, including the Iran conflict. He explained that Pakistan depends on imported fuel, and higher international prices are putting pressure on the national economy.
He said that earlier, the government tried to control prices through a general subsidy but it increased fuel consumption and financial burden. Now, on the recommendation of international financial institutions, the government has shifted to a targeted subsidy system to support only the most deserving groups.
The chief minister also announced a relief package for farmers and transporters. About 336,000 small farmers owning up to 25 acres will receive Rs1,500 per acre to cover diesel costs for wheat threshing. This payment will begin soon using existing verified data.
He said that the transporters will also get financial support to prevent fare increases. Passenger buses, goods trucks and heavy transport vehicles will receive fixed subsidies while intra-city buses will get additional support due to higher fuel usage. Transporters will have to ensure that fares are not increased, he added.
He said that the overall aim is to protect the public from inflation and reduce the impact of rising fuel prices on daily life.
Punjab relief measures
The Punjab government announced free public transport on intra-city routes across the province.
“Citizens will not have to purchase tickets while travelling on public transport — Orange Line Train, Metro Bus Service, Speedo Bus and Green Electric Bus,” Punjab Chief Minister Maryam Nawaz said.
In a post on her X account, chief minster said the surge in international oil prices amid ongoing global crises had led to a significant increase in petrol and diesel prices in Pakistan.
“To safeguard our farmers, all wheat-growing farmers in Punjab with landholdings of up to 25 acres will receive a diesel subsidy of 10 litres per acre at Rs150 per litre. I stand firmly with each one of you and I am personally overseeing the implementation of this subsidy to ensure it remains transparent, effective, and reaches every deserving farmer without delay,” she said, adding that farmers were the backbone of Punjab.
The chief minister also announced a subsidy for motorcyclists, under which every registered bike owner would receive a subsidy of Rs100 on 20 litres of fuel. She praised the prime minister for maintaining petroleum supply and prices for a month despite global pressures.
“By providing relief worth billions of rupees within a month, PM Shehbaz Sharif has made a sincere and strong effort to protect the public from hardships,” she said.
Under the initiative, registered goods transport vehicles will receive Rs70,000 per month, large vehicles Rs80,000 and public service buses Rs100,000 in subsidy. She urged transporters, particularly in Punjab, to support the public and refrain from passing on increased costs to passengers and consumers.
She emphasised that the government would closely monitor the situation to ensure that relief reaches citizens in real terms. She termed the current situation a time for responsibility, compassion and solidarity, reaffirming the government’s commitment to protecting citizens from economic hardship.
She also urged citizens to use public transport instead of private vehicles under the prevailing circumstances, adding that efforts would be made to ease the economic burden as conditions improve.
Free transport in Islamabad
Meanwhile, Interior Minister Mohsin Naqvi said in a post on X that, on the directives of PM Shehbaz, all public transport in Islamabad would be made free of cost for the next 30 days, starting Saturday.
“The Ministry of Interior will bear the expenditure of Rs350 million for this public relief initiative,” he said.
Imran Ayub in Karachi and Zulqernain Tahir in Lahore also contributed to this report
Published in Dawn, April 4th, 2026
