Another POL price hike sparks widespread concern

LAHORE: The public at large, trade unions, associations, and civil society groups have strongly criticised the government for once again increasing petrol and diesel prices, demanding that the decision be withdrawn immediately.

They also raised concerns over the rising cost of commodities, transportation, and other services, saying these were being driven up by repeated increases in petroleum prices. “With this increase of nearly Rs27 per litre, petrol has now crossed Rs393, almost reaching Rs400,” a motorist told Dawn at a petrol pump in Gulberg, questioning how already struggling citizens could survive under such financial pressure.

Another commuter said he had expected a reduction in POL prices, not another increase. “We were expecting a reduction in the POL prices but the increase surprised us. This is highhandedness with the public at large,” he said, expressing anger over the decision.

On Friday, the government increased petrol and high-speed diesel (HSD) prices by Rs26.77 per litre each, taking petrol to Rs393.35 and diesel to Rs380.19 per litre. Petrol, mainly used in private vehicles, rickshaws, and motorcycles, directly affects the middle and lower-middle classes. Diesel, widely used in transport, industry, and generators, has broader economic impacts.

Earlier, following regional tensions after the US-Israel war on Iran, the government had already raised fuel prices significantly, including an increase of Rs55 per litre on March 6 and further hikes of 43pc and 55pc for petrol and diesel on April 2.

Later, Prime Minister Shehbaz Sharif intervened after public backlash, reducing the petroleum levy by Rs80 per litre and bringing petrol down to Rs378. On April 10, further reductions were announced, cutting petrol and diesel prices again, while a Rs32.12 cut in diesel was approved last week. However, petrol prices were left unchanged before the latest hike reversed the relief.

“With repeated increases in POL prices, it seems the government is crushing the poor, who are already fighting immense inflation,” said a motorcyclist in Johar Town, adding that the government must develop a mechanism to support low-income groups.

On the other hand, trade unions and associations also strongly condemned the increase in fuel prices, calling it unjust and economically damaging for workers and the poor.

A meeting of the All-Pakistan Federation of Trade Unions was held under General Secretary Khurshid Ahmed, with representatives from various sectors including transport, banking, irrigation, electricity, and textiles attending the session.

Speaking at the meeting, labour leaders Khurshid Ahmed, Akbar Ali Khan, Salahuddin Ayubi, Arshad Gujjar, Javed Iqbal Khan, Usama Tariq, Hassan Munir Bhatti, Shafqat Javed, Sajid Kazmi, Nosher Khan, Musarrat Shafi, and Zahida Akhtar said rising prices of essential goods had severely affected workers and low-income households.

They stated that the government was fueling inflation through repeated petroleum price hikes without proper consideration, while increases in electricity and gas tariffs were worsening the situation further.

“It has become extremely difficult to provide education to children, as schools are closed three days a week while fees continue to rise,” Khurshid Ahmed said, adding that unemployment and rising medical costs had deepened public frustration.

He further noted that transport costs and utility prices had made life unbearable for ordinary citizens, especially daily wage earners. The forum demanded immediate withdrawal of the latest fuel price hike and urged the government to adjust conveyance allowances in line with rising fares.

Separately, a petition has been filed in the Lahore High Court challenging the recent increase in petroleum prices.

Advocate Azhar Siddique, head of the Judicial Activism Panel, submitted the petition, stating that the federal government increased petrol and diesel prices by Rs26.77 per litre, pushing petrol to an unprecedented Rs393.35 per litre.

He argued that the Petroleum Development Levy (PDL) is being used as an unlawful revenue-generating tool, claiming that over Rs1,200 billion have been collected under this head in the first nine months of the fiscal year.

The petition states that the financial burden has fallen disproportionately on ordinary citizens, especially daily wage earners, while no transparent pricing mechanism has been disclosed.

It further alleges that the recent increase is driven more by taxation policies than by international oil price fluctuations, and that it violates principles of economic justice and fundamental rights.

The petitioner has requested the court to direct authorities to present complete records of petroleum pricing, including correspondence with the International Monetary Fund (IMF).

He has also sought an immediate suspension of further price hikes until a transparent mechanism is introduced, and urged the court to declare the recent increase illegal.

The federal government and the Oil and Gas Regulatory Authority (OGRA) have been named as respondents in the case.