Pakistan Cuts Petrol Prices Amid Widespread Protests

The Pakistan government has reduced petrol and diesel prices in response to major protests, as announced by the Ministry of Information. The decrease aims to provide relief before Independence Day celebrations, despite maintaining the petroleum development levy. Further protests from Jamaat-e-Islami are anticipated.

Amid widespread protests over soaring fuel and electricity costs, the Pakistan government led by Nawaz Sharif announced a significant reduction in petrol prices. According to Geo News, the price per litre of petrol has been slashed by Rs 8.47 for the next two weeks, dropping from Rs 269.43 to Rs 260.96. High-speed diesel (HSD) prices have also been cut by Rs 6.70, bringing it down to Rs 266.07 per litre from Rs 272.77.

The Ministry of Information officially declared the price reduction on Tuesday, as the country approaches its Independence Day celebrations on August 14. Despite this price relief, the petroleum development levy (PDL) remains unchanged at Rs 70 per litre. This levy was recently hiked from Rs 60 to Rs 70 per litre in the federal budget for 2024-25, aiming to generate additional revenue amidst fluctuating global fuel prices.

Meanwhile, Jamaat-e-Islami (JI) leader Hafiz Naeem ur Rehman has announced plans for another protest after his party recently called off a two-week-long demonstration in Rawalpindi. Naeem indicated that JI might collaborate with trader groups to organize peaceful protests, as consultations with trade bodies are underway.

The new protests come after JI postponed their 14-day sit-in upon reaching agreements with the government regarding demands to cut high power tariffs and reassess contracts with independent power producers (IPPs). These contracts have been under scrutiny for contributing to steep utility bills due to large capacity payments. During a press conference on Tuesday, Naeem criticized the ruling elite for deteriorating the country's law and order situation.

Naeem stressed the need to expand the tax base but criticized the government's approach of imposing more taxes on an already inflation-hit population, particularly targeting traders and industrialists.

(With inputs from agencies.)