Government decides to end all types of fuel subsidies

ISLAMABAD: Following the reduction in fuel prices in the global market and the approval of Prime Minister Shehbaz Sharif, the government has decided to end the fuel subsidy program across the country.

The seventh meeting of the National Steering Committee was held under the chairmanship of Deputy Prime Minister Ishaq Dar, in which a detailed review of the ongoing subsidy scheme for motorcyclists, small farmers, public transport and goods transport was conducted.

During the meeting, it was informed that the benefit of the reduction in oil prices at the global level has been transferred to the public, now the prices of petroleum products have also decreased significantly at the domestic level, so there is no need to continue the subsidy program in the current circumstances.

It should be remembered that the fuel subsidy scheme was launched by the government in April 2026 when the prices of petroleum products in Pakistan increased rapidly due to global tensions and increase in oil prices.

Under the fuel subsidy program, motorcycle riders were being given a monthly discount of Rs 100 per liter, up to 20 liters, meaning a motorcycle owner was getting a monthly relief of about Rs 2,000.

Similarly, the monthly subsidy for goods transport was set at Rs 70,000, for large transport vehicles at Rs 80,000, while for public transport, a monthly subsidy of Rs 100,000 was kept to prevent the increase in fares and prices of essential commodities.

The meeting decided that the subsidy program would be terminated in all provinces, Gilgit-Baltistan and Azad Kashmir, however, Deputy Prime Minister Ishaq Dar directed that the data, transparency and delivery system for future public relief programs be further improved.