Pakistan’s top economic decision-making body has approved Rs75 billion for a targeted fuel subsidy scheme aimed at providing relief to owners of motorcycles, rickshaws, qingqis and small cars amid rising petrol prices and pressure on global oil supplies. The approval was given by the Economic Coordination Committee (ECC) on September 14, with the Finance Division confirming that the funds will be used as a Technical Supplementary Grant for implementation of the subsidy programme. The move comes as the government seeks to limit the impact of higher fuel costs on consumers and maintain access to petrol for segments most affected by increases in transportation expenses.
Under the approved scheme, owners of two-wheelers and three-wheelers will receive a subsidy of Rs100 per liter on a monthly allocation of 20 liters of petrol. The eligible vehicles include motorcycles, rickshaws and qingqis, while owners of small vehicles with engines of up to 800cc will qualify for the same Rs100 per liter relief on a monthly allocation of 30 liters. The programme is intended to provide targeted assistance rather than a broad fuel price reduction, with the government limiting eligibility to specific vehicle categories and users.
The government has also placed restrictions on how the subsidy can be accessed. According to the details of the scheme, relief will be available only to non-commercial users and will be limited to one vehicle per user or owner. This structure is designed to direct the available funds toward individual consumers rather than commercial operators with larger fuel requirements. The government has said the targeted approach is intended to provide relief to salaried and middle-class consumers while managing the fiscal cost of the programme.
A technology-based mechanism will be used to administer the subsidy. The Ministry of IT and Telecom will deploy and manage the Fuel Pass System for the digital management and transparent delivery of the relief. The system is expected to provide a digital channel through which eligible users can be identified and the subsidy administered. By using a technology-supported process, the government aims to improve transparency around the distribution of the fuel assistance and ensure that eligible consumers can access the benefit under the programme’s stated conditions.
Consumers seeking to benefit from the subsidy can register through text messaging. Applicants are required to send a message to 9771 containing relevant information, including their computerized identity card number, vehicle registration number, province or region where the vehicle is registered and the vehicle’s registration date. The registration process will allow the authorities to determine eligibility and link the relief to the individual and vehicle covered by the scheme.
The approval comes after another increase in domestic fuel prices. The government recently raised the price of high-speed diesel to Rs403.32 per liter and petrol to Rs375.82 per liter. Rising international oil prices have added pressure to domestic fuel costs, with global supply concerns contributing to further increases. Brent crude futures were reported at $107.51 per barrel, while West Texas Intermediate stood at $102.32 per barrel during the period covered by the source. Oil prices had also recorded a significant increase during the preceding week.
Petroleum Minister Ali Pervaiz Malik said the government was working to prevent fuel shortages and maintain supplies in the country. He said the government was seeking to protect consumers from excessive financial pressure while managing higher procurement costs. According to the minister, the government is also working with private-sector refineries on changes to the pricing formula for refined products, while efforts continue to ensure fuel availability across the country.
The latest programme is the second fuel subsidy announced by Islamabad this year in response to elevated fuel costs. Federal and provincial authorities had introduced multiple relief measures earlier in the year, including transport support, fare freezes and targeted subsidies. The new Rs75 billion allocation expands the government’s targeted approach by focusing specifically on smaller vehicles and non-commercial users, while the planned Fuel Pass System introduces a digital mechanism for administering the relief.
With the ECC approval now in place, the next stage will involve implementing the subsidy through the designated digital system and registering eligible vehicle owners. The government’s approach combines direct financial support with technology-based administration, as it attempts to provide targeted relief while maintaining greater oversight of the programme. The initiative is expected to remain focused on consumers using motorcycles, three-wheelers and vehicles up to 800cc, with the subsidy limits and registration requirements determining access to the monthly petrol relief.
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