The federal government has decided to end fuel subsidies for motorcyclists, small farmers, and public and goods transport operators after a sharp fall in global oil prices.
The decision was taken during a meeting of the National Steering Committee on Fuel Subsidy, chaired by Deputy Prime Minister Senator Ishaq Dar on Monday.
The committee reviewed the subsidy programme being implemented across provinces, Gilgit-Baltistan, and Azad Jammu and Kashmir. It noted that global fuel prices have dropped significantly and that the benefit has already been passed on to consumers.
It was then agreed to discontinue the subsidy scheme with the approval of Prime Minister Shehbaz Sharif.
Deputy Prime Minister Ishaq Dar appreciated the committee’s efforts and highlighted strong coordination between federal and provincial authorities. He also said the experience should be used to improve data systems and service delivery in future programs.
The meeting was attended by senior officials including the Special Assistant to the Prime Minister Tariq Bajwa, secretaries of petroleum and IT, the State Bank governor, and representatives from all provinces as well as Gilgit-Baltistan and AJK.
The subsidy scheme was introduced after fuel prices increased sharply following the closure of the Strait of Hormuz after a US-Israeli attack on Iran in February this year. Under the programme, motorcyclists, rickshaw drivers, and owners of small vehicles received subsidies of Rs50 to Rs100 per litre, while transport operators received Rs70,000 to Rs100,000 monthly support. Small farmers were given a diesel subsidy of Rs100 per litre.
Last week, the government also reduced fuel prices after global markets eased, bringing petrol to Rs299.50 per litre and diesel to Rs311.47 per litre.
Earlier this year, fuel prices had reached record highs, with petrol rising to Rs458.40 per litre and diesel to Rs520.35 per litre, causing financial pressure on households, transporters, and the agriculture sector.
