PM Sharif extends fuel subsidies for motorcyclists and transporters by one month

By Staff Reporter

ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday extended by one month the fuel subsidies for motorcyclists, public-transport operators and goods transporters, aiming to shield economically vulnerable segment from the sharp rise in global oil prices triggered by the conflict in the Middle East.

In a statement, the Prime Minister’s Office said Sharif had decided to continue the relief measures introduced last month “to motorcyclists, public and goods transporters by one more month.” The premier directed transporters not to raise passenger and freight fares and ordered “effective monitoring” to ensure the subsidies reach their intended recipients.

“Providing relief to the common man remained the government’s top priority,” the statement quoted Sharif as saying. “The people will not be left alone under any circumstances.” He expressed hope that the regional situation would improve soon, allowing petroleum prices to stabilize and easing pressure on households and businesses.

The extension comes as Pakistan grapples with a near-tripling of its weekly oil-import bill to $800 million from about $300 million before the outbreak of hostilities. Sharif told a federal cabinet meeting a day earlier that consultations with provinces on prolonging the subsidies were already under way. The subsidies were part of a targeted relief package unveiled earlier this month for bikers, farmers and transporters to cushion the impact of global oil-price shocks linked to the US-Israel war on Iran.

Under the original plan, two-wheeler owners receive a subsidy of Rs100 per liter on petrol, capped at 20 liters a month for three months. Small trucks carrying 80-85% of food items are eligible for Rs70,000 a month in direct support, while large transport vehicles receive Rs80,000 monthly and inter-city public-service vehicles get Rs100,000. Freight vehicles were also set to benefit from a Rs100-per-liter fuel subsidy to help contain transportation costs and keep goods moving across the country.

Provinces are administering the subsidized fuel quotas and have committed roughly Rs200 billion over the original three-month period, apportioned broadly along the lines of their National Finance Commission shares. Punjab is contributing about Rs100 billion, Sindh Rs51 billion to Rs52 billion, Khyber Pakhtunkhwa Rs15 billion and Balochistan Rs8 billion to Rs9 billion. While approving the continuation of the measures, Sharif emphasised that the federal government, working with the provinces, had put together a national relief package worth billions of rupees under difficult economic conditions and would continue to extend support where possible. He stressed the need for close oversight to ensure the benefits flow directly to deserving segments of society.