Fuel Cost Crisis Halts Lahore Metro Bus Service

Operations on the Lahore Metro Bus service are set to be suspended from August 11, as a private firm managing the 27km Gajjumata-Shahdra route cited insurmountable rising fuel costs. The decision follows failed talks with the Punjab Mass Transit Authority (PMA) to find a solution.

The private operator has issued a final notice to the PMA, stating that it has exhausted its financial resources and can no longer sustain operations. The company referred to previous letters and a meeting on August 6, where it reiterated its inability to continue without the PMA providing fuel from its own sources, as per a court order dated July 29.

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When we took over, the diesel price was around Rs105 per litre or so. Later, the prices continued to rise from time to time, making it difficult for the company to meet its fuel costs.

The PMA, however, has labeled the suspension threat as an attempt to "blackmail" and pressure the government. The authority stated it would challenge the court verdict and invoke contract clauses for dispute resolution through arbitrators. A senior company official explained that the fuel cost calculation formula never fully reimbursed the company's expenses, and the gap widened significantly with recent price hikes, forcing the company to cover the difference from its own funds and borrowings, leading to continuous losses.

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Any such suspension shall solely arise from PMA’s failure to implement the court order and shall not constitute any fault, default or unwillingness on the part of the company. All resulting operational, financial and legal consequences shall rest entirely with PMA.