LAHORE(National Times)- Punjab’s Finance Minister Mujtaba Shuja-ur-Rehman issued a stern warning, petrol prices could skyrocket to 500 rupees per litre if citizens and institutions fail to support the government’s austerity campaign.

Addressing industrialists at Federation of Pakistan Chambers of Commerce and Industry, the minister revealed shocking reality: despite closing institutions for three days to save petrol, consumption actually increased by 7-10 percent, putting burden on the national kitty. He cautioned that strict measures might soon be unavoidable.

In a bid to curb petrol dependence, the Punjab government is officially promoting electric vehicles, aiming for a substantial reduction in fuel costs. FPCCI Regional Chairman Zaki Ijaz urged the government to provide interest-free loans with zero markup for the next five years to encourage the shift toward electric vehicles.

Business leaders, however, expressed concern that frequent restrictions on business activities and changes in working hours are slashing tax revenue, causing significant damage to the economy.

Finance minister reassured industrialists that the government would consider their concerns but stressed that energy conservation is the only viable path forward in the current economic crisis.

Pakistanis may face a sharp rise in petrol prices, potentially exceeding Rs350 per litre, as the government considers passing on the impact of rising global oil costs while maintaining limited subsidies for select groups like farmers and bikers.

The decision follows a high-level meeting chaired by Finance Minister Muhammad Aurangzeb with provincial and federal officials, amid a widening gap between domestic fuel prices and international import costs, estimated at Rs100 per litre for petrol and over Rs200 per litre for diesel.

Provinces are expected to share the financial burden under a proposed formula, though Punjab and Sindh favor passing most of the increase to consumers with targeted support for key sectors.