ISLAMABAD: (Finance Reporter) – The federal government is considering restoring a targeted fuel subsidy for motorcycle and rickshaw users amid another rise in petrol prices, 24NewsHD TV channel reported on Sunday.
Sources said the government was likely to consult the provinces on the proposed targeted subsidy programme. A final decision would be taken after consultations with the provinces and in light of the prevailing regional situation.
The federal and provincial governments had discontinued the fuel subsidy scheme in June 2026. However, the programme could be revived following the renewed increase in petrol prices. Under the previous initiative, motorcycle owners were eligible for a monthly subsidy of up to Rs2,000.
The decision to discontinue the earlier programme was taken in principle during the seventh meeting of the National Steering Committee on Fuel Subsidy held on June 22, 2026. The meeting was chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar, while the final decision was left to Prime Minister Shehbaz Sharif.
According to an official statement issued after the meeting, the committee reviewed the implementation of the fuel subsidy programme for motorcyclists, small farmers, public transport operators and goods transporters across the provinces.
The committee observed that international oil prices had declined significantly and that the benefit of lower global prices had already been passed on to consumers. Ishaq Dar appreciated the provinces for their cooperation in implementing the subsidy programme and directed officials to document the lessons and experience gained from the initiative.
He also instructed the relevant authorities to address shortcomings in data collection and delivery mechanisms to ensure that any future relief programme could be implemented more efficiently and effectively.
The meeting was attended by Special Assistant to the Prime Minister Tariq Bajwa, secretaries of the Petroleum and Information Technology ministries, the Governor of the State Bank of Pakistan, and senior representatives from the four provinces, Gilgit-Baltistan and Azad Jammu and Kashmir.
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