Fuel subsidy for farmers, transporters and motorcyclists phased out amid lower oil prices

The government has decided to terminate its fuel subsidy programme for motorcyclists, small farmers and public and goods transport operators after determining that falling international oil prices have reduced the need for targeted support.

The decision was approved by Prime Minister Shehbaz Sharif following recommendations made at the seventh meeting of the National Steering Committee on Fuel Subsidy, chaired by Deputy Prime Minister and Foreign Minister Senator Ishaq Dar.

During the meeting, the committee assessed the implementation of the subsidy scheme in all four provinces, as well as Gilgit-Baltistan (GB) and Azad Jammu and Kashmir (AJK). Participants were informed that the recent decline in global petroleum prices had already translated into lower domestic fuel rates, allowing the benefit to reach consumers directly.

In light of the improved price environment, the committee concluded that the subsidy programme had served its purpose and agreed to discontinue it.

Dar praised the coordination among federal and provincial authorities, describing the rollout of the initiative as a collaborative effort involving the federation, provinces, GB and AJK.

He instructed relevant institutions to document the experience gained during the programme's implementation, strengthen data management systems and address weaknesses in beneficiary identification and delivery mechanisms.

The deputy prime minister also called for the lessons learned from the scheme to be incorporated into the design of future welfare programmes to improve the efficiency and reach of public support initiatives.

According to the official statement, the meeting was attended by Special Assistant to the Prime Minister Tariq Bajwa, the governor of the State Bank of Pakistan, the federal secretaries of petroleum and information technology, and senior representatives from the provinces, GB and AJK.