The federal government decided to decrease fares for economy passengers on the railway and the national flag carrier – Pakistan International Airlines – for intercity services in the wake of the decrease in oil prices, the minister announced on Saturday.
“The government is decreasing the economy class fare of the railway by 10%,” Railways and Aviation Minister Khawaja Saad Rafique said in a video statement on Saturday. “10% discount is also being given on both classes of the PIA for intercity travel.”
The decision comes after the government announced a decrease in petroleum product prices. Prime Minister Shehbaz Sharif announced an Rs18.50 per litre reduction in the per litre price of petrol as part of much-promised relief on Thursday. Petrol is now available at Rs230.24.
Oil prices fell on Thursday as investors focused on the prospect of a large US rate hike that could stem inflation but at the same time hit oil demand.
The implementation of the decision would start on Saturday at midnight. The discount will remain in effect for the next 30 days.
“Around 94% of the people on railways travel in economy class,” he said, “while 90% of people in airlines travel in economy class.” The government would issue the notification on Sunday (tomorrow).
The minister said that the Civil Aviation Authority would direct private airlines to decrease their fares. He expressed his confidence that provincial governments would contact transporters for a reduction in fares.
Information Minister Marriyum Aurangzeb, in a media briefing on cabinet decisions on Friday, said that it asked the provincial authorities to take steps for providing relief to the masses.
“The cabinet has decided to keep a close watch for the implementation of the POL price cut in the shape of reduced fares and resolved to transfer whatever relief becomes available in international markets to the masses,” she said.
Fares of airlines and railways had increased with the increase in fuel prices.
Transporters in Punjab on Friday announced a 10% reduction in inter-city fares. The All Pakistan Public Transport Owners Federation said that they had reduced the fares in the “public interest”. But, they said the federation would reduce the prices more if the district government decreased the fees taken from them en route.
