ISLAMABAD: The government has decided to abolish its fuel subsidy program following a significant drop in global petroleum prices, officials said after a meeting.
The decision was taken during the seventh meeting of the National Steering Committee on fuel subsidies, chaired by Deputy Prime Minister and Foreign Minister Muhammad Ishaq Dar.
The committee assessed the implementation of subsidies provided to motorcyclists, small farmers, public transport, and goods transport sectors across the country.
Officials noted that declining international fuel prices have already been passed on to consumers, reducing the need for continued government support. With the approval of the prime minister, the committee agreed to formally end the subsidy program.
Dar praised inter-provincial coordination in executing the initiative and directed authorities to document lessons learned from the program. He also emphasized improving data systems and delivery mechanisms to enhance future public service initiatives.
The fuel subsidy program was initially introduced to cushion vulnerable segments from rising energy costs, but improved global market conditions have now prompted its withdrawal.
