PM Shehbaz says fuel subsidy will stay in place until December

Prime Minister Shehbaz Sharif said on Wednesday that the fuel subsidy would remain in place until December. Speaking at a federal cabinet meeting, he said the government had also shielded the public from the impact of higher electricity prices.

Sharif said the subsidy scheme has directly benefited more than 15 million people. He said Rs28 billion has been released for the programme, which will run until the end of December.

According to the prime minister, a Rs15 per litre rise in petrol prices was not passed on to consumers. He said the petroleum minister and his team had held discussions with refineries, and that petrol pumps failing to cooperate with the subsidy scheme would face action.

On supplies, Sharif said the era of the LNG mafia had ended. He said state-owned companies PSO and PARCO are handling operations and that a mechanism has been set up for LPG. Measures are under way to secure LNG, LPG and oil supplies for winter, he added.

Sharif said soaring global oil prices were a major driver of instability in the region. He said Field Marshal Syed Asim Munir had travelled to Iran, where Pakistan, Saudi Arabia and Türkiye held a meeting with the Iranian leadership in Tehran. He described the discussions as very cordial and positive, and said Pakistan's sincere efforts for regional peace and stability were continuing.

The cabinet also approved a Rs160 billion development package for Khyber Pakhtunkhwa. Sharif said restoring peace in the province is the government's top priority. He said the country had been rid of terrorism in 2018 but the menace has returned.

The prime minister also congratulated Finance Minister Muhammad Aurangzeb on taking over the chairmanship of the G24.