ISLAMABAD – Goods Transport Alliance welcomed relief on petroleum products, announcing immediate 15% reduction in goods transportation freight charges.
The move comes hours after Pakistani government announced major reduction in petrol prices, cutting the rate by Rs. 74 per litre and bringing the new price down to Rs. 299 per litre. Despite this significant relief, petrol remains approximately Rs. 33 per litre more expensive than it was before the war began.
President of the Goods Transport Alliance, Malik Shahzad Awan, announced the reduction in freight rates on Friday night following a further significant decrease in petrol and diesel prices. Malik Shahzad Awan said that the Prime Minister’s decision has provided relief to the transport sector, and they hope petroleum products will become even cheaper in the future.
He added that transporters continued operating their vehicles at a loss during difficult times in the national interest.
Awan demanded that the federal government immediately withdraw the increase in withholding tax introduced in the budget. He also called for relief for transporters in toll taxes, e-challans, and other taxes. Furthermore, he said that transporters should be provided with facilities and services commensurate with the taxes they pay.
He also stressed that both the federal and provincial governments should address the issues facing the transport industry.
Experts believe that the reduction in goods transport freight charges will lead to a decline in the prices of dozens of commodities, initiating a broader reduction in consumer prices.
Fuel prices rose sharply over the past several months because of the conflict between the United States and Iran, which began in late February.
The first major increase came on March 7, when petrol prices rose by Rs. 55 per litre, pushing the rate to Rs. 321.17 per litre. Less than a month later, on April 3, authorities implemented a massive Rs. 137.24 per litre increase, sending petrol prices to a record Rs. 458.41 per litre, the highest level seen during the crisis.
However, a partial reversal followed quickly. On April 5, the government reduced prices by Rs. 80.41 per litre, lowering the rate to Rs. 378 per litre. A further Rs. 11.42 per litre cut on April 11 brought the price down to Rs. 366.58 per litre.
The downward trend proved short-lived. On April 25, petrol became Rs. 26.77 per litre more expensive, reaching Rs. 393.35 per litre. Another increase of Rs. 6.51 per litre on May 1 pushed the price to Rs. 399.86 per litre, while a further Rs. 14.92 per litre hike on May 9 raised the rate to Rs. 414.78 per litre.
Throughout May and June, a series of smaller reductions gradually eased prices. By June 19, petrol was selling at approximately Rs. 378 per litre.
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