LAHORE: Pakistan’s Punjab province has approved a Rs1.8 billion grant to deploy 1,000 electric buses offering free travel for commuters over the next month.
The initiative is aimed at easing the financial burden on passengers after sharp increases in petroleum prices triggered widespread concern over rising travel costs.
Buses coming for all 148 Tehsils of Punjab. Insha’Allah. https://t.co/R8b0eoNdnl
— Maryam Nawaz Sharif (@MaryamNSharif) May 14, 2026
Officials say the decision is designed to offset the impact of soaring transport expenses that followed the federal government’s recent hike in fuel prices.
According to officials, a supplementary grant of Rs1.8 billion has been approved to hire buses from private operators for the project. The funds will be released by the provincial finance department on a seven-day advance basis, while private transport companies participating in the scheme will receive weekly payments.
Punjab Transport Authority will oversee implementation and maintain detailed financial and operational records to ensure transparency. Regional Transport Authorities have also been granted direct powers to hire buses where needed to ensure rapid rollout across major urban centres. Officials indicated that if the model proves effective, the duration of the free travel facility could be extended beyond the one-month period.
The move follows the federal government’s recent increase in petroleum prices, which raised petrol price by Rs14.92 per litre and diesel by Rs15, pushing both products to nearly Rs415 per litre.
The increase came amid tensions in the Middle East, particularly uncertainty surrounding regional instability involving the United States, Israel and Iran, which has disrupted global oil market confidence and driven prices upward.
The fuel adjustment has had an immediate impact across Pakistan’s transport sector. Public transport operators in several cities initially raised fares on key intercity routes, with ticket prices increasing by Rs100 to Rs450 depending on distance. Goods transporters also raised freight charges, warning that operational costs had become increasingly difficult to sustain.
The fare hikes prompted swift intervention by the Punjab government, which directed transport authorities to reverse unauthorised increases and ensure that private operators adhere to officially approved fare structures.
Free transport initiative builds on earlier emergency relief measures announced by the provincial administration after concerns that rising fuel prices would place an unbearable burden on low- and middle-income families already struggling with inflation.
Chief Minister Maryam Nawaz had earlier directed transport officials to identify immediate ways to shield daily commuters from the impact of rising petroleum costs, particularly workers and students who depend on public transport for routine travel.
Provincial authorities believe the latest intervention will not only reduce commuting expenses but also encourage wider use of public transportation, helping ease congestion and lower dependence on private vehicles at a time of heightened fuel costs.
