Independent Report
Islamabad, April 4, 2026: Former prime minister and Awam Pakistan Party Chairman Shahid Khaqan Abbasi has strongly criticized the government’s handling of the ongoing petroleum crisis, saying the current policy framework has failed to control rising fuel prices and provide sustainable relief.
Abbasi stated that no country can sell petrol or diesel below cost, recalling that past subsidy regimes resulted in losses worth hundreds of millions of dollars monthly for Pakistan. He said recent fuel price increases, followed by partial and temporary reductions, reflect inconsistent and reactive policymaking.
He argued that the government increased prices without a clear pricing mechanism and later adjusted taxes in a way that further burdened consumers. According to him, such measures only shift the financial pressure onto the public without addressing structural issues.
Highlighting the impact on households, he noted that Pakistan has around 20 million registered motorcycles, consuming nearly $6 billion worth of fuel annually. An average motorcyclist, he said, spends about Rs7,000 per month, with nearly 40% going to taxes.
Abbasi urged immediate deregulation of petroleum prices to allow market competition to determine rates. He added that the successful deregulation of high-octane fuel in 2018 should be expanded to all petroleum products.
He also pointed to Pakistan’s growing solar energy adoption, stating that around 26,000 megawatts have been installed in less than two years through public investment. However, he criticized the imposition of taxes on the sector, saying it discourages clean energy growth.
Warning about broader energy challenges, Abbasi said rising circular debt, costly LNG imports, and inconsistent policies are placing severe strain on the economy. He called for long-term, coherent energy planning instead of short-term relief measures.
