Govt begins transport subsidy disbursement to offset fuel price impact

The federal government has started disbursing subsidies to public and goods transport operators following directions from Prime Minister Shehbaz Sharif, as part of measures to limit the impact of rising fuel prices on fares and inflation.

The progress of the subsidy programme was reviewed in a meeting chaired by the prime minister, where officials said adequate fuel reserves are available across the country to meet demand.

Under the scheme, passenger buses are receiving Rs100,000 per month, while minibuses and vans are being given Rs40,000 monthly. Goods transport is also being supported, with trucks receiving Rs70,000 per month, large goods vehicles Rs80,000 and delivery vans Rs35,000 to limit the impact on food prices.

Officials said the subsidies are being disbursed through digital wallets, with provincial governments sharing verified vehicle data to ensure transparency.

The prime minister said a broader relief package of Rs129 billion has been provided over the past three weeks, alongside a reduction in the petroleum levy by Rs80 per litre. 

In addition, Pakistan Railways is being supported with Rs6 billion to maintain passenger and freight fares, while a planned 25% quarterly increase in toll taxes has been withdrawn.

Meanwhile, Information Technology and Telecommunication Minister Shaza Fatima Khawaja said trucks, buses and other public service vehicles have started receiving subsidies, adding that the system was implemented earlier than scheduled due to urgency.

She said the subsidy aims to prevent an increase in transport fares and reduce the inflationary impact of higher diesel prices. The system was finalised after consultations between the federal government and provinces, with implementation based on vehicle registration data provided by provincial authorities.

The minister said subsidy distribution would be completed within days and would cover large goods vehicles, trucks, buses and vans involved in public transport.

Separately, Minister of State for Finance Bilal Azhar Kayani said the government had absorbed Rs129 billion to keep fuel prices unchanged for three weeks prior to the latest increase. He added that fuel supplies remain stable across the country.

Officials said the measures are aimed at reducing the pass-through of fuel price increases to transport fares and essential goods while maintaining supply continuity.