Govt. announces targeted subsidies after fuel price hike amid regional tensions

ISLAMABAD, Apr 03 (APP): Minister for Finance and Revenue Senator Muhammad Aurangzeb on Thursday announced a targeted subsidy package aimed at cushioning the impact of a recent petroleum price surge, following decisions taken by the government in consultation with the national leadership amid prevailing regional tensions.

The announcement came after petroleum prices in the country rose sharply, with petrol reaching Rs458.40 per litre and high-speed diesel Rs520.35 per litre effective from April 3, following an unprecedented spike in global crude oil prices.

Addressing a news conference along with Minister for Petroleum Ali Pervaiz Malik, the finance minister said the government had opted for a targeted relief mechanism instead of blanket subsidies to ensure that support reaches the most deserving segments of society.

“The leadership has decided that we are announcing a targeted subsidy programme so that relief is not a blanket one, but reaches those who are truly deserving,” he said, adding that the move was aimed at reducing the burden of inflation on the poor and middle class.

He said the decision followed a detailed review of global petroleum supply and pricing trends over the past four weeks, particularly in light of emerging challenges in neighbouring regions, while Pakistan had so far avoided severe disruptions.

Highlighting key measures, the minister said a subsidy of Rs100 per litre would be provided for two-wheeler motorcycles, capped at 20 litres per month, for a period of three months.

To support the agriculture sector during the harvesting season, he said small landowners would receive a one-time subsidy of Rs1,500 per acre, noting that diesel consumption increases significantly during this period.

He further announced subsidies for the transport sector, including Rs100 per litre support for freight vehicles, alongside fixed monthly assistance of Rs70,000 for trucks, Rs80,000 for large transport vehicles, and Rs100,000 for public service buses, initially for one month, subject to review.

The finance minister said the government would also extend support to Pakistan Railways to help maintain affordable fares, particularly for lower-income passengers.

Aurangzeb said the evolving global energy situation required careful resource management, saying that the government would continue to review the measures on a monthly basis.

He said alongside subsidy rationalization, the government was also considering demand management steps, including revised market timings in consultation with provinces, to conserve energy and maintain economic balance.

The minister reiterated that the overarching policy direction was to channel limited resources towards the most vulnerable segments while ensuring stability in essential sectors amid ongoing uncertainties.

APP/mag-maw/