ISLAMABAD: Pakistan on Monday announced an end to subsidies given to motorcycle owners, farmers and public transporters during the United States-Iran conflict, citing a decline in global and domestic fuel prices.
Pakistan announced a range of targeted relief measures in early April, including free public transport in Islamabad, fare freezes on Pakistan Railways and targeted subsidies for transporters, farmers and motorbike users across the country, as petrol reached Rs458.41 [$1.65] and diesel hit Rs520.35 [$1.87] per liter.
Passenger buses were being provided Rs100,000 [$357] per month, while minibuses and vans received Rs40,000 [$143] per month to prevent them from increasing fares. Similarly, truck owners received Rs70,000 [$250], heavy freight vehicles got Rs80,000 [$286] and delivery vans were paid Rs35,000 [$125] a month. Under the scheme, motorcycle, rickshaw and up to 800cc vehicle owners received subsidies ranging from Rs50 ($0.18) to Rs100 ($0.36) per liter.
Pakistan’s Deputy Prime Minister Ishaq Dar on Monday presided over a meeting of the National Steering Committee on Fuel Subsidy to review the subsidies given to motorcyclists, small farmers, public and goods transporters in all provinces, Azad Kashmir and Gilgit-Baltistan.
“The Committee noted that global fuel prices have declined sharply, the benefit of which has already been passed on to the consumers, and agreed to discontinue the subsidy with the approval of the Prime Minister,” Dar wrote on X.
The development comes days after Pakistan slashed the prices of petrol and high-speed diesel by Rs74 ($0.27) and Rs67 ($0.24) per liter as global crude prices retreated after an interim United States-Iran deal to end their war and reopen the Strait of Hormuz, a maritime chokepoint handling a fifth of the world’s petroleum that was shut since early March.
The significant cut in fuel prices followed several reductions since both sides agreed to a ceasefire in early April.
Last week, Pakistan also announced an end to emergency fuel conservation and austerity measures imposed during the conflict, following a peace agreement between Washington and Tehran that eased pressure on global oil markets.
The measures were introduced after the conflict disrupted energy supplies and shipping through the Strait of Hormuz, driving up oil prices for import-dependent countries such as Pakistan.
