Govt ends nationwide fuel subsidy scheme

The decision was taken during a meeting of the National Steering Committee on Fuel Subsidy. The meeting was chaired by Deputy Prime Minister Senator Ishaq Dar.

ISLAMABAD: The government has decided to discontinue fuel subsidies across the country.

The decision was taken during a meeting of the National Steering Committee on Fuel Subsidy. The meeting was chaired by Deputy Prime Minister Senator Ishaq Dar.

According to an official statement, the subsidy previously provided to different sectors has now been withdrawn. This includes support for motorcycle users and small farmers.

The committee also approved the end of fuel subsidies for public transport and goods transport operators. These subsidies were earlier being provided across all four provinces, as well as Gilgit-Baltistan and Azad Jammu and Kashmir.

Officials stated that global fuel prices have shown a noticeable decline. They added that the benefit of reduced international prices has already been passed on to domestic consumers.

The decision was taken with the approval of Prime Minister Shehbaz Sharif, the statement confirmed.

During the meeting, officials briefed participants that motorcycles, rickshaws, and small vehicles up to 800cc were previously receiving subsidies ranging from Rs50 to Rs100 per litre.

It was further informed that public transport and freight operators were receiving monthly support between Rs70,000 and Rs100,000 to help keep fares lower.

Small farmers were also receiving a subsidy of Rs100 per litre on diesel to support agricultural activities.

Authorities said the subsidy system has now been fully phased out as part of a broader policy adjustment in the energy sector.