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Federal Government Discontinues Target Fuel Subsidies for Bikers and Farmers as Global Oil Prices Crash
The federal government has ended its emergency fuel subsidy program for bikers, public transport operators, and small farmers, citing the recent sharp decline in global oil prices. Managed by Deputy PM Ishaq Dar, the targeted relief scheme—originally launched when the Iran conflict drove petrol to a record Rs458 per litre—has been shelved now that domestic petrol prices have dropped back to Rs299.50 per litre.
ND
by News Desk
2026-06-23
Federal Government Discontinues Target Fuel Subsidies for Bikers and Farmers as Global Oil Prices Crash

Detailed Report

  • The Policy Reversal: The federal government of Pakistan has officially decided to terminate its targeted fuel subsidy program for motorcyclists, public transport operators, goods transporters, and small-scale farmers. The strategic rollback was finalized on Monday during a high-level review session of the National Steering Committee on Fuel Subsidy, presided over by Deputy Prime Minister and Foreign Minister Senator Ishaq Dar. The decision received immediate executive approval from Prime Minister Shehbaz Sharif.

  • The Economic Catalyst: The administration justified the sudden elimination of the social safety net by citing a sharp, sustained collapse in global crude oil prices, heavily influenced by the successful stabilization of maritime corridors under the recently brokered Swiss peace accords. The steering committee—which included the State Bank Governor, the Special Assistant to the PM Tariq Bajwa, and petroleum secretaries—noted that the macro-economic relief from international markets has already been passed directly to local pumps. Deputy PM Dar commended the cross-provincial alignment, instructing data teams to preserve the structural registration frameworks built during this program to optimize the delivery of future targeted financial state assistance.

  • The Cut Disallowances and Current Price Baseline: Before the termination order, the emergency state mechanism provided critical localized relief: motorcyclists and rickshaw drivers received direct electronic waivers of Rs50 to Rs100 per litre, commercial transport fleets collected Rs70,000 to Rs100,000 in monthly support, and smallholders were granted a Rs100 per litre diesel exemption for farming machinery. However, following the latest domestic price revisions executed last week as global tensions cooled, the fiscal baseline has shifted dramatically downward, allowing the state to pull back its market interventions.
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#PakistanFuelPrices #FuelSubsidy #IshaqDar #ShehbazSharif #EnergyMarkets #PetrolPriceDrop #EconomyPakistan #BreakingNewsPakistan
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