Lahore Metro Bus firm to suspend operations from Aug 11 over fuel cost dispute with Punjab Mass Transit Authority.

A private firm that runs the Lahore Metro Bus on the 27‑km Gajjumata‑Shahdra line announced a final notice to the Punjab Mass Transit Authority (PMA) that it will suspend operations from Aug. 11. The notice said fuel costs and other issues had not been resolved after repeated correspondence. The PMA called the firm’s move a form of blackmail. It said it would challenge the court order that requires the authority to supply fuel from its own sources and would use a contract provision that allows both parties to appoint arbitrators. The firm mentioned letters dated July 31 and Aug. 4 that had not yet been answered by the PMA, and a meeting on Aug. 6 where the company told the authority it had exhausted its financial resources and could no longer operate. The PMA said it could not act without government directions. During the meeting the firm stated that it had followed the court’s July 29 order, but that the PMA had not begun uninterrupted fuel supply as required. The firm warned that any suspension would solely result from the PMA’s failure to implement the court order and that all financial and legal consequences would rest on the authority. A company senior official said diesel prices had risen from around Rs 105 per litre when the company took over, and that the reimbursement formula covered only a fixed part of the cost, widening the gap as prices went up. The official said the company had to use its own funds and borrowings to cover the remaining costs, leading to continuous losses. The PMA official said the court had clarified that the June 8, 2023 order had not been set aside and that the authority should implement it. The official added that the authority was not yet able to do so without approval from the transport department. The PMA acknowledged it could not provide fuel from its own sources at present and said it might deploy outside buses from Aug. 11 to keep the service running if the company walked out.