Prime Minister Shehbaz Sharif has decided to keep petroleum product prices unchanged for the next fortnight, opting instead to utilize the financial relief from declining international petrol prices to significantly reduce the power tariff for the masses.
The decision underscores the government’s commitment to addressing inflation and easing the financial burden on the public.
In a statement issued on Saturday, the PM Office confirmed that the federal government would maintain petroleum product prices, ensuring that the full financial benefit is passed on to consumers through reduced electricity costs. Shehbaz emphasized that this move is part of a broader strategy to achieve a substantial and lasting decrease in power rates across the country.
The premier stated that a comprehensive package is being developed to implement the power tariff reduction effectively. He highlighted that the government is finalizing the details of this initiative, leveraging the financial space created by fluctuations in global petroleum prices. The relief package, expected to be unveiled in the coming weeks, is anticipated to provide significant economic relief to the masses.
Shehbaz reiterated his administration’s unwavering commitment to prioritizing public welfare since assuming office. He assured that alongside the power tariff reduction, the government is actively working on additional relief measures aimed at curbing inflation and supporting low-income households.
“This relief will not only lower electricity costs but will also have a broader impact on inflation, leading to further price reductions in essential commodities,” Shehbaz stated. He further announced that he would personally address the nation to elaborate on the relief measures and their expected impact on the economy.
Earlier reports suggested that petroleum prices were expected to be reduced by up to Rs14 per litre in the fortnightly review due on March 15. Oil industry sources indicated that petrol prices could drop by Rs14 per litre, while high-speed diesel (HSD) might see a reduction of Rs8 per litre. Kerosene and light diesel oil were also expected to see price cuts of Rs10 and Rs7 per litre, respectively.
Despite these projections, Shehbaz’s government opted to maintain petroleum prices, prioritizing long-term economic relief through reduced electricity costs. The premier stressed that stabilizing petroleum prices would help manage inflation while ensuring sustainable relief for citizens.
Petrol remains a crucial fuel for private transportation, small vehicles, rickshaws, and two-wheelers, directly affecting the middle and lower-middle classes. Meanwhile, high-speed diesel, widely used in heavy transport vehicles, agricultural machinery, and public transport, has a direct impact on food prices and inflation trends. Shehbaz’s administration is closely monitoring these factors to implement policies that strike a balance between economic stability and public relief.