Balancing Hormuz crisis and consumer interest

The decision follows widespread unrest after petrol prices were raised overnight by 42.7% to 485 rupees per litre, triggering protests and long queues at fuel stations. However, after public outrage, Pakistan’s PM Shehbaz Sharif later revised the hike, bringing petrol down to 378 rupees per litre. “This decrease will be applicable for at least one month,” he said during a televised address, adding, “I promise I will not rest until your life is back to normal.”Coming to diesel prices, the government had increased HSD price by PKR 184.49 per litre, from PKR 335.86 to PKR 520.35, but abolished the levy, providing some relief to citizens.Detailing the relief measures, interior minister Mohsin Naqvi said, “All public transport in Islamabad will be made free of cost for the general public for the next 30 days, starting tomorrow (Saturday),” noting that the government would shoulder a cost of 350 million rupees.Punjab has mirrored the move, removing fares on public transport and introducing “targeted subsidies” for trucks and buses. CM Maryam Nawaz Sharif also appealed to transport operators not to shift the burden onto passengers, saying, “We promise to relieve the public of economic burden as soon as conditions improve.”In Karachi, similar steps have been taken by the Sindh government, which announced subsidies aimed at motorcyclists and small farmers.

Middle East tensions strain Pakistan

The developments come against the backdrop of rising global energy disruptions linked to the US-Israel war on Iran, which began on February 28. The conflict has led to retaliatory strikes 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 steps, including a four-day workweek for many government offices, extended school holidays and a shift to online classes in some cases.The economic pressure is being felt acutely in a country where about 25% of the population of 240 million lives in poverty, according to World Bank figures. Earlier in March, fuel prices had already been increased by 20 percent, with authorities initially resisting further hikes.Protests broke out on Friday in Lahore, where demonstrators called for the government to withdraw the increase. “The government, overnight, has dropped a ‘petrol bomb’ on its people,” said Naveed Ahmed, a 39-year-old protestor. “Our nation cannot bear this situation right now. This storm of inflation must be stopped, and relief should be provided to the public.”Hafiz Abdul Rauf, another protester, questioned the reasoning behind the hike, saying, “The rise we are seeing is not due to the (Iran) war, but to pressure from the IMF, pressure that 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 has also raised prices of liquefied petroleum gas and compressed natural gas by 29%. Meanwhile, the International Monetary Fund warned earlier this week that vulnerable economies face not only rising energy costs but also disruptions in supply chains. On March 28, it said it had reached an initial agreement with Pakistan on a $1.2-billion support package.