Fuel cost hits Lahore Metro service

Lahore Metro Bus operator announces suspension from August 11 amid escalating fuel costs and unresolved negotiations with the Punjab Mass Transit Authority (PMA). The private firm argues the move is a form of blackmail aimed at pressuring the government to fulfill its fuel provision obligations. The company has served notice after talks over fuel costs and other issues failed, citing financial exhaustion and inability to continue operations.

The PMA, however, maintains it cannot decide on the matter without government direction and has challenged court orders directing it to supply fuel. The dispute stems from a June 2023 court ruling ordering the PMA to provide fuel from its own sources, which the authority claims has been set aside. The company contends it has paid a disproportionate share of fuel costs due to a flawed calculation formula, exacerbated by rising diesel prices.

Talks between the two parties broke down, with the company alleging the PMA has not provided a solution despite promising one. The PMA, meanwhile, claims it is awaiting government approval to comply with court orders and has arranged some external buses to maintain limited service.