The Middle East crisis has dragged on for more than a month, causing a stir around the world. While some countries are increasing fuel prices, others are introducing other measures to protect consumers from the impact while balancing energy reserves. Pakistan is no stranger to current energy instability as the country imports about 85% of its supplies through the Strait of Hormuz. The Pakistani government has already increased petrol prices several times since the conflict began, with the last increase taking place on Friday. The sharp rise in fuel prices prompted the government to impose emergency relief measures, including free public transport in key areas, as public anger spilled onto the streets. Commuters in Islamabad and Punjab will not have to pay fares on government transport for the next 30 days, officials announced on Friday.
Balancing the Hormuz Crisis and Consumer Interest
Large scale unrest broke out after petrol prices were increased by 42.7% to Rs 485 per liter overnight, leading to protests and long queues at fuel stations. However, following public outcry, Pakistan PM Shehbaz Sharif later revised the hike, bringing petrol down to Rs 378 per litre. “This reduction will be in place for at least a month,” he said during a televised address, adding, “I promise I will not rest until your life returns to normal.”“Talking about diesel prices, the government had increased the price of HSD by PKR 184.49 per liter from PKR 335.86 to PKR 520.35, but abolished the levy, bringing some relief to citizens.Giving details of the relief measures, Interior Minister Mohsin Naqvi said, “All public transport in Islamabad will be made free for the general public for the next 30 days starting tomorrow (Saturday),” noting that the government will bear the cost of Rs 350 million.Punjab, reflecting this move, has removed fares on public transport and introduced “targeted subsidies” for trucks and buses. CM Maryam Nawaz Sharif also appealed to transport operators not to burden passengers, saying, “We promise to relieve the public from the financial burden as soon as the situation improves.”In Karachi, similar steps have been taken by the Sindh government, which has announced subsidies for motorcyclists and small farmers.
Pakistan is under stress due to Middle East tension
The development comes against the backdrop of escalating global energy disruptions linked to the US-Israel war over Iran, which began on February 28. The conflict led to retaliatory attacks across the Gulf and disrupted movement through the Strait of Hormuz, a vital route for energy supplies, particularly to Asia.To manage the strain, Pakistan has introduced a series of fuel-saving measures, including a four-day workweek for many government offices, extended school holidays and, in some cases, a shift to online classes.Economic pressures are being felt sharply in a country where about 25% of its population of 240 million lives in poverty, according to World Bank data. Earlier in March, fuel prices had already been raised by 20 per cent, with officials initially opposed to further hikes.Protests broke out in Lahore on Friday, where protesters demanded the government to roll back the hike. Protester Naveed Ahmed, 39, said, “The government has dropped ‘petrol bombs’ on its own people overnight.” “Our country cannot tolerate this situation right now. This storm of inflation has to be stopped and the public has to be provided relief.”Another protester, Hafiz Abdul Rauf, questioned the logic behind the increase, saying, “The increase we are seeing is not because of the (Iran) war, but because of pressure from the IMF, the pressure must be resisted. For God’s sake, step back from these demands and show some compassion for the people.”The pressure is not limited to Pakistan. Bangladesh also increased the prices of liquefied petroleum gas and compressed natural gas by 29%. Meanwhile, the International Monetary Fund warned earlier this week that weaker economies face not only rising energy costs but also disruptions to supply chains. On March 28, it said it had reached a preliminary agreement with Pakistan on a $1.2 billion support package.