Lahore Metro Bus Service Faces Suspension Amid Fuel Cost Dispute

POLICY WIRE — Lahore, Pakistan — A private firm operating the Lahore Metro Bus on the 27km Gajjumata-Shahdra route has announced the suspension of its operations starting August 11. The decision follows failed negotiations with the Punjab Mass Transit Authority (PMA) over escalating fuel costs and contractual issues.

The company issued a final notice to the PMA, stating that it had exhausted its financial resources and could no longer sustain operations. The PMA has labeled the company’s move as “blackmail” and vowed to challenge a court order directing it to supply fuel from its own sources.

According to the final notice, the company cited previous correspondence dated July 31 and August 4, as well as a meeting held on August 6, where it reiterated its inability to continue operations without the PMA’s compliance with the court’s July 29 orders. The company emphasized that any suspension would result from the PMA’s failure to implement the court order.

A senior company official, speaking on condition of anonymity, explained that the situation worsened due to frequent fuel price increases. The official noted that the payment formula didn’t cover the company’s full fuel costs, leading to continuous losses.

In response, a senior PMA official confirmed the court verdict but stated that the authority had already challenged the order and planned to invoke a contractual clause for appointing arbitrators. The official admitted that the PMA couldn’t implement the court orders without government approval.

Despite the looming suspension, the PMA indicated it had arranged alternative buses to maintain the service. The Lahore Metro Bus Service, inaugurated in February 2013, is the country’s first modern mass transit project.

Reporting by Policy-Wire (PW)