Prime Minister (PM) Shehbaz Sharif has announced a fuel relief scheme offering Rs100 per litre subsidy to users of motorcycles, rickshaws, Qingqis and vehicles up to 800cc as rising global oil prices increase the cost of fuel.
The Prime Minister’s Office (PMO) said on Sunday that the scheme was introduced after Shehbaz took “immediate notice” of tensions in the Middle East and the resulting rise in global oil prices.
“The government is fully aware of the burden being placed on the public due to the increase in oil prices. In this hour of difficulty, we will not leave the public alone,” Shehbaz said, according to the PMO statement.
Under the scheme, users of two- and three-wheeled vehicles will receive Rs100 per litre in relief on a monthly quota of 20 litres. Owners of vehicles with engines up to 800cc will receive the same Rs100 per litre relief on a monthly quota of 30 litres.
The scheme will begin in Islamabad from midnight on September 15. In the rest of the country, including Azad Kashmir and Gilgit-Baltistan, the relief will start from midnight on September 17.
The PMO said that registration for the scheme began on Sunday, while details of the registration process will be communicated through an awareness campaign. State-run PTV News said that further information, including the registration procedure, is available at pmfuelrelief.pk.
The government will provide the relief through a monthly system under which consumers will register themselves and receive a token number at home.
Petroleum Minister Ali Pervez Malik, speaking to a private media outlet, said that the prime minister had decided to target the segment of society most affected by rising fuel prices. “The prime minister decided to provide relief that is greater than removing the petroleum levy,” Malik said.
Explaining how the scheme will work, Malik said that the government had dispatched devices to petrol pumps and consumers would show their token to receive fuel at a subsidised price.
Shehbaz Sharif also thanked the provinces for cooperating in providing information on motorcycles, rickshaws and small vehicles for registration under the scheme.
The announcement comes as fuel prices have risen following renewed hostilities in the Middle East and disruption to major oil supply routes. The conflict has affected the Strait of Hormuz, while trade through Bab al-Mandab is also under threat from Houthi rebels.
After the latest increase announced on Friday, petrol is priced at Rs375.82 per litre while High-Speed Diesel (HSD) costs Rs403.32 per litre. The government currently charges Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.
Saudi Arabia recently shut its East-West oil pipeline after it came under aerial attack. Saudi oil buyers and traders have warned that the disruption could result in a loss of up to four percent of global oil supply if the pipeline does not restart within days.
The International Energy Agency (IEA) has also said that global oil supply and demand are expected to fall further this year as delays in restoring normal Middle Eastern oil flows extend into 2027.
Pakistan had moved to daily fuel-price revisions in July following renewed hostilities between Iran and the United States (US), after previously revising prices weekly since early March.
The government had also announced targeted subsidised-fuel relief in April.
Despite the recent surge, high-speed diesel is below its April 3 peak of Rs520.35 per litre. Its price had risen from Rs281 per litre after the US-Iran war began on February 28. Petrol, meanwhile, reached a peak of Rs458.41 per litre on April 3 after rising from Rs266 in the first week of March.
