Govt decides to end fuel subsidy after price cut

ISLAMABAD:

The federal government has decided to discontinue the fuel subsidy following a sharp decline in international petroleum prices; the decision was taken with the approval of Prime Minister Shehbaz Sharif.

Deputy Prime Minister and Foreign Minister Senator Ishaq Dar chaired the seventh meeting of the National Steering Committee on fuel subsidy, which reviewed the rollout of petroleum subsidies for motorcyclists, small farmers, public transport, and goods transport across all provinces, Gilgit-Baltistan, and Azad Jammu and Kashmir.

The committee noted that global fuel prices had declined significantly and that the benefit of the reduction had already been passed on to consumers. During the meeting, it was agreed that the fuel subsidy scheme would be discontinued with the PM's approval.

The deputy prime minister appreciated the committee's work in ensuring inter-provincial coordination and directed that the entire exercise be properly documented.

He further instructed that gaps in data and service delivery be addressed to strengthen future policy measures and improve public service delivery mechanisms.

The meeting was attended by SAPM Tariq Bajwa, federal secretaries of petroleum and IT, the State Bank of Pakistan governor, and senior representatives from all provinces, G-B, and AJK.

Following the oil price surge in the global market after the US-Iran conflict, the government significantly increased petroleum product prices after initially deciding to absorb the burden.

At one point, petrol prices had reached Rs458 per litre in April this year.

While announcing the relief, the prime minister also unveiled a fuel subsidy package aimed at shielding the public from rising fuel costs triggered by tensions in the Gulf region.

Under that initiative, motorcyclists were to receive a subsidy of Rs100 per litre, while goods transport, public transport, and freight vehicles were also provided support for one month.

Under the same relief measures, small trucks were given Rs70,000 per month, large trucks Rs80,000, and public transport buses Rs100,000 as monthly subsidies. The initiative also included support for small farmers, who were provided Rs1,500 per acre in assistance.