Govt ends fuel subsidy for motorcyclists, farmers and public transport
Government approves fuel subsidy withdrawal
The decision was taken during a meeting of the National Steering Committee on fuel subsidies, chaired by Deputy Prime Minister Ishaq Dar.
The committee approved the end of the fuel subsidy Pakistan programme for motorcyclists, rickshaw drivers, small farmers, public transport operators and freight transport companies.
Officials said the decision was made with the approval of Prime Minister Shehbaz Sharif.
Why is the subsidy ending?
According to the committee, international oil prices have fallen significantly in recent months. The government said the benefit of lower fuel prices Pakistan has already been passed on to consumers through reduced petrol and diesel prices.
Officials believe there is no longer a need to continue the Pakistan fuel subsidy scheme because market prices have become more stable.
Who was receiving the subsidy?
Before the decision, people benefiting from the motorcycle fuel subsidy included motorcyclists, rickshaw drivers and owners of vehicles with engines up to 800cc. They were receiving between Rs50 and Rs100 per litre.
Under the public transport subsidy, transport operators received monthly financial assistance ranging from Rs70,000 to Rs100,000 to help keep fares affordable.
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At the same time, small farmers were receiving support under the diesel subsidy farmers programme, which provided Rs100 per litre on diesel to lower farming expenses. The freight transport subsidy also helped goods transport operators reduce operating costs.
What happens next?
With the fuel subsidy Pakistan programme ending, all these benefits will stop. Motorcyclists, transport operators and farmers will now have to bear the full fuel cost unless the government introduces another support package.
Officials have not announced any replacement for the motorcycle fuel subsidy, public transport subsidy or freight transport subsidy.
