Prime Minister Shehbaz Sharif has announced a special fuel relief scheme for motorcycles, rickshaws, Qingqis and vehicles with engine capacities of up to 800cc, as the government seeks to reduce the impact of sharply higher global oil prices on consumers. Under the scheme, eligible users will receive a relief of Rs100 per litre within specified monthly fuel limits. The announcement comes amid continued volatility in international energy markets and higher domestic petroleum prices, which have increased financial pressure on households and transport users.
According to a statement issued by the Prime Minister’s Office, the prime minister took immediate notice of the recent tensions in the Middle East and their impact on global oil prices. The government said it was aware of the additional burden being placed on the public and would provide targeted assistance to segments considered most affected by the increase in fuel costs. The new initiative is designed specifically for users of smaller vehicles, including two-wheelers and three-wheelers, as well as owners of vehicles with engine capacities of up to 800cc.
Under the relief scheme, users of motorcycles, rickshaws and Qingqis will receive Rs100 per litre in fuel relief on a monthly quota of 20 litres. Owners of vehicles with engine capacities of up to 800cc will receive the same Rs100 per litre relief, but with a monthly quota of 30 litres. This means eligible two-wheeler and three-wheeler users can receive up to Rs2,000 in monthly fuel relief, while qualifying small-car users can receive up to Rs3,000, based on the stated monthly limits.
The scheme will be implemented in phases across the country. In Islamabad, the relief will become effective from midnight on September 15, while users in the rest of Pakistan, including Azad Kashmir and Gilgit-Baltistan, will begin receiving the relief from midnight on September 17. Registration for the initiative has already been opened, with the government saying that details about the registration process will be communicated to the public through an awareness campaign. The provinces have also cooperated by providing information on motorcycles, rickshaws and small vehicles for registration.
Further information about the initiative, including the registration process, has been made available through the government’s designated website. Petroleum Minister Ali Perzaiz Malik told Geo News that the government had designed the measure to provide assistance to the segment of society most affected by higher fuel costs. He explained that the relief would be provided on a monthly basis and that registered users would receive a token number at home, which could then be presented at participating petrol pumps to obtain fuel at the subsidised rate.
The announcement comes after a significant increase in domestic petroleum prices as international energy markets have faced disruption. Following the latest increase announced on Friday, petrol reached Rs375.82 per litre, while high-speed diesel was priced at Rs403.32 per litre. The government continues to collect Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel. Rising international crude prices have therefore created additional pressure on consumers, particularly those who depend on motorcycles, rickshaws and small vehicles for daily transportation and income-generating activities.
International oil markets have remained under pressure because of disruptions to major energy supply routes in the Middle East. The Strait of Hormuz has faced significant disruption, while the Bab al-Mandab route has also come under increasing security concerns. Saudi Arabia has additionally faced disruption to an important oil pipeline following an aerial attack, raising concerns about potential losses in global supply. Oil buyers and traders have warned that prolonged disruption could further tighten international markets and push energy prices higher.
The International Energy Agency has also warned that global oil supply and demand could decline further than previously expected this year, with delays in restoring normal energy flows from the Gulf region extending the effects of the current crisis. These international developments have made fuel prices more difficult for governments and consumers to manage. Pakistan, which remains dependent on imported energy, is particularly exposed to movements in international petroleum prices and disruptions affecting global supply chains.
The government has already introduced several measures in response to the volatility in international fuel markets. In July, authorities announced that petroleum prices would be determined on a daily basis because of fluctuations in international markets. Before that change, fuel prices had been revised weekly since early March, alongside measures aimed at conserving fuel. The federal government had also introduced targeted relief measures in April to provide subsidised fuel to selected groups.
The latest relief initiative follows a period in which petroleum prices reached significantly higher levels earlier in the year. High-speed diesel climbed to Rs520.35 per litre on April 3 after rising from Rs281 per litre following the outbreak of the current regional conflict. Petrol similarly reached a peak of Rs458.41 per litre on April 3, having started its upward movement from Rs266 per litre during the first week of March.
With the new scheme, the government is targeting relief toward users of smaller vehicles rather than introducing a broad-based reduction in fuel prices. The approach allows the authorities to provide a defined subsidy according to vehicle type and monthly consumption limits. The effectiveness of the measure will depend on the registration process, identification of eligible users and implementation at petrol pumps across the country. For millions of motorcycle, rickshaw and small-vehicle users, the Rs100 per litre relief is intended to provide some reduction in the cost of fuel as international energy market pressures continue to affect domestic prices.
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