CM launches Rs1.72bn targeted fuel subsidy to shield public from price surge

KARACHI, Apr 04 (APP):Sindh Chief Minister Syed Murad Ali Shah, presiding over a high-level meeting, worked out the modalities, mechanism, and implementation strategy for launching a targeted fuel subsidy programme aimed at protecting citizens from the sharp rise in global fuel prices, while ensuring that public transport fares remain affordable and the province’s transit system continues to operate smoothly.

     The meeting at the CM House, which was attended by provincial ministers Sharjeel Inam Memon, Mukesh Kumar Chawla, Mohammad Bux Khan Mahar, Chief Secretary Asif Hyder Shah, PSCM Agha Wasif, and provincial secretaries Asif Ikram, Fayaz Jatoi (Finance), Saleem Rajput (Excise), Asad Zamin (Transport), CEO SPHF Khalid Shaikh and others, he focused on maintaining affordable transport fares and ensuring the operational sustainability of the province’s transit network.

     The Chief Minister said the initiative was designed to cushion the impact of unprecedented increases in petrol and diesel prices triggered by recent global geopolitical developments.

    The chief minister noted that fuel prices have surged significantly in recent weeks, posing a serious risk of fare hikes and reduced public transport usage, particularly affecting low-income groups. To counter this, the government has introduced a Targeted People’s Fuel Differential Subsidy, bridging the gap between pre-crisis and current fuel prices.

“This programme is focused on protecting the most vulnerable segments of society while maintaining economic stability,” the CM said, adding that blanket subsidies had proven inefficient and financially unsustainable.

Major Support for Transport Sector

Under the package, substantial monthly subsidies will be provided to transport operators on the condition that fares are not increased buses, minibuses and coaches: Up to Rs240,000 per vehicle per month (including federal and provincial share).

Wagons and pickups: Rs50,000 to Rs100,000 per month.

Goods transport: Rs70,000 for small trucks and Rs80,000 for large trucks.

For intercity transport, subsidies have been structured in slabs based on route length, with long-distance buses eligible for up to Rs1.08 million per month, ensuring stability in fares across the province.

In a major public relief measure, the Sindh government will provide Rs2,000 cash support to every registered motorcycle owner in April. This initiative is expected to benefit millions of commuters who rely on motorcycles for daily travel.

To ensure transparency and prevent misuse, the subsidy will be disbursed through a digital, app-based system integrated with the Excise and Transport Department databases. The system will verify vehicle registration, fitness, and ownership before transferring funds directly to beneficiaries’ bank accounts.

The chief minister directed the Excise Department to keep offices open for extended hours over the next 15 days to facilitate registrations and ensure smooth implementation.

The subsidy programme, with an estimated monthly cost of Rs1.72 billion, will support a transport network serving nearly 57 million passengers per month, effectively stabilising fares and discouraging a shift towards private vehicle use.

Reaffirming his government’s commitment, Murad Ali Shah said, “We will ensure that relief reaches the people in a transparent and timely manner. This targeted approach will protect both commuters and the transport sector during these challenging times.”