ISLAMABAD: The government has decided to discontinue fuel subsidies previously provided to motorcyclists, public transport operators, freight transporters and small-scale farmers across the country.
The decision was taken during a meeting of the National Steering Committee on Fuel Subsidies, chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar.
According to an official statement issued after the meeting, the subsidy programme had been implemented across all four provinces, as well as Gilgit-Baltistan and Azad Jammu and Kashmir. The committee agreed to terminate the subsidies with the approval of the Prime Minister.
The statement noted that a significant decline in global fuel prices had already enabled the government to pass on relief directly to consumers through lower domestic fuel prices, reducing the need for additional subsidies.
Under the scheme, motorcyclists, rickshaw drivers and owners of vehicles up to 800cc were receiving fuel subsidies ranging from Rs50 to Rs100 per litre.
Public transport and goods transport operators were also benefiting from monthly subsidies ranging between Rs70,000 and Rs100,000 to help keep transportation fares affordable.
Small farmers had been receiving a diesel subsidy of Rs100 per litre to support agricultural activities and reduce production costs.
Officials said the decision reflects changing market conditions and the government’s assessment that the benefits of lower international fuel prices have already been transferred to consumers.
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