ISLAMABAD: The federal government has decided to discontinue the fuel subsidy programme for motorcyclists, small farmers, public transport operators and goods transporters after a significant decline in global oil prices led to substantial reductions in domestic fuel rates.
The decision was made during the seventh meeting of the National Steering Committee on Fuel Subsidy, chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar. The committee reviewed the implementation of the subsidy programme across all provinces, as well as Gilgit-Baltistan and Azad Jammu and Kashmir.
Officials noted that the sharp fall in international petroleum prices had already translated into lower fuel costs for consumers. Following approval from Prime Minister Shehbaz Sharif, the committee agreed to end the subsidy initiative.
The move follows recent cuts in petroleum prices, with petrol reduced by Rs74 per litre and diesel by Rs67 per litre, bringing their prices down to Rs299 and Rs311 per litre, respectively. The reductions came after global oil prices declined following a US-Iran agreement that ended a conflict lasting more than three months.
While appreciating the committee’s efforts and interprovincial coordination during the subsidy programme, Ishaq Dar directed relevant authorities to document lessons learned from the initiative and address shortcomings in data management and delivery mechanisms to improve future public relief programmes.
The meeting was attended by Special Assistant to the Prime Minister Tariq Bajwa, federal secretaries of petroleum and information technology, the Governor of the State Bank of Pakistan, and senior representatives from all provinces, Gilgit-Baltistan and Azad Jammu and Kashmir.
The fuel subsidy programme was introduced earlier this year when international oil prices surged amid tensions and conflict involving the United States and Iran. At the peak of the crisis, petrol prices in Pakistan climbed to Rs458 per litre in April.
In response, Prime Minister Shehbaz Sharif announced an Rs80 per litre reduction in the petroleum levy and introduced a targeted fuel subsidy package to shield consumers from rising energy costs.
Under the relief programme, motorcyclists received a subsidy of Rs100 per litre, while public transport operators, freight vehicles and goods transporters were provided financial assistance for one month. Small trucks received Rs70,000 per month, large trucks Rs80,000, and public transport buses Rs100,000 in monthly support.
The package also included assistance for the agriculture sector, with small farmers receiving Rs1,500 per acre to help offset rising fuel-related expenses.
With fuel prices now significantly lower, the government believes the objective of providing temporary relief has been achieved, making further subsidies unnecessary.
