Pakistan: State public transport in Islamabad and its most populous province will be free next month, officials said on Friday, after the government sharply raised fuel prices due to rising global energy costs linked to the Iran war.
The move follows an overnight decision to raise petrol prices by 42.7 percent and diesel by 54.9 percent, which sparked several street protests, according to AFP. Long lines of motorbikes were also reported at gas stations as people rushed to fill up.
Interior Minister Mohsin Naqvi headed to X and said, “All public transport in Islamabad will be free for the general public for the next 30 days starting tomorrow (Saturday).
He added that the measure should cost the government 350 million rupees (about $1.25 million).
In Punjab, Pakistan’s most populous province, the chief minister also waived fares on the state’s public transport and introduced targeted subsidies for trucks and buses.
Urging carriers not to pass on the increased cost to passengers and consumers, Maryam Nawaz Sharif said: “We promise to relieve the public of the economic burden once conditions improve.”
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Meanwhile, in Sindh, the provincial government in Karachi announced similar subsidy measures for motorcyclists and small farmers.
The government has introduced a number of austerity measures to save fuel, including moving many government offices to a four-day work week, extending school holidays and moving some classes online.
Pakistan is considered a lower-middle-income country, with about 25% of its 240 million people living below the poverty line, according to the World Bank. The government raised fuel prices by 20% in early March, but resisted further increases for weeks, arguing it could absorb the higher costs without passing them on to the public.
The Pak government dropped a petrol bomb
Dozens of protesters gathered in Lahore, the capital of Punjab, on Friday to urge government ministers to reverse the hike in fuel prices.
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“Overnight, the government dropped a ‘petrol bomb’ on its people,” AFP quoted 39-year-old protester Naveed Ahmed as saying, adding: “Our nation cannot bear this situation now. This inflationary storm must be stopped and the public must be given relief.”
Supporters of Jamaat-e-Islami hold a demonstration to protest the government’s recent hike in fuel prices amid soaring global oil prices due to the Iran war in Lahore, Pakistan, Friday, April 3, 2026. (AP Photo)(AP)A motorcyclist buys fuel after the government raised fuel prices amid soaring global oil prices in the wake of the Iran-Iran war, in Peshawar, Pakistan, Friday, April 3, 2026. (AP Photo/Muhammad Sajjad)(AP)
Another protester in Lahore, Hafiz Abdul Rauf, said: “The rise we are seeing is not due to the (Iranian) war, but due to IMF pressure, pressure which must be resisted. For God’s sake, back off from these demands and show some compassion to the people.”
Bangladesh hikes LPG costs
Many Asian countries have raised fuel prices or taken other steps to deal with the crisis caused by the war with Iran.
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Bangladesh on Thursday raised the cost of liquefied petroleum gas (LPG) used for cooking and compressed natural gas used in some vehicles by 29%. Earlier this week, the International Monetary Fund warned that vulnerable economies like Pakistan face not only rising energy prices but also disruptions to supply chains.
On 28 March, the IMF announced that it had reached an initial agreement with Pakistan to release a new support package of $1.2 billion as part of its ongoing assistance programs for the country.
The US-Israeli conflict against Iran, which began on February 28, sparked a large-scale conflict in the Middle East, with Iranian retaliatory strikes hitting targets throughout the Persian Gulf and effectively shutting down shipping in the Strait of Hormuz. This key waterway typically carries around one-fifth of the world’s energy supplies, much of which goes to Asia.
