The Middle East crisis has extended beyond just a month, sending ripples around the world. While some countries are raising fuel prices, others are introducing other measures to protect consumers from the impact while balancing energy reserves.
Pakistan is no stranger to constant energy fluctuations as the country imports nearly 85% of its supplies through the Strait of Hormuz. The Pakistani government has already raised gasoline prices several times since the conflict began, with the latest increase on Friday. The sharp rise in fuel prices has prompted the government to take emergency relief measures, including free public transport in key areas, as popular anger spills onto the streets.
Commuters in Islamabad and Punjab will not have to pay fares on state-run transport for the next 30 days, authorities announced on Friday.
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Balancing the Hormuz crisis and consumer interests
The decision comes in the wake of widespread unrest after petrol prices were raised overnight by 42.7% to 485 rupees per litre, sparking protests and long queues at petrol stations. However, following public outcry, Pakistani Prime Minister Shehbaz Sharif later revised the increase, bringing the price of petrol down to Rs 378 per litre.
“This reduction will be in effect for at least a month,” he said during a televised speech, adding, “I promise you that I will not rest until your life returns to normal.”
“Regarding diesel prices, the government increased the HSD price by PKR 184.49 per litre, from PKR 335.86 to PKR 520.35, but removed the tax, providing some relief to citizens.Giving details of the relief measures, Interior Minister Mohsin Naqvi said, “All public transportation in Islamabad will be free for the general public for the next 30 days, starting tomorrow (Saturday),” noting that the government will bear a cost of Rs 350 million.Punjab state has reversed the move, scrapping public transport fares and providing “targeted subsidies” for trucks and buses. Prime Minister Maryam Nawaz Sharif also appealed to transport operators not to burden passengers, saying: “We promise to reduce the economic burden on the public once conditions improve.”In Karachi, the Sindh government took similar steps, announcing subsidies targeting motorcyclists and small farmers.
Tensions in the Middle East are putting pressure on Pakistan
These developments come against the backdrop of increasing global energy turmoil linked to the US-Israeli 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, especially to Asia.To manage this pressure, Pakistan has introduced a series of fuel-saving steps, including a four-day work week in many government offices, extending school holidays and switching to online classes in some cases.The economic pressures are acute in a country where about 25% of the 240 million people live in poverty, according to World Bank figures. Earlier in March, fuel prices had already been increased by 20 percent, with authorities initially resisting further increases.Protests broke out on Friday in Lahore, where demonstrators demanded that the government withdraw the increase. “Overnight, the government dropped a firebomb on its own people,” said Naveed Ahmed, a 39-year-old protester.
“Our nation cannot bear this situation at the present time. This inflationary storm must be stopped, and relief must be provided to the people.”Hafez Abdul Raouf, another demonstrator, asked about the reason behind the increase, saying: “The increase we are witnessing is not because of the (Iran) war, but because of the pressures of the International Monetary Fund, which are pressures that must be resisted. For God’s sake, they backed down from these demands and showed some compassion for the people.”The pressure is not limited to Pakistan. Bangladesh also raised the prices of LPG and CNG by 29%. Meanwhile, the International Monetary Fund warned earlier this week that weak 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.