Pakistan's PM announces Rs100 per litre fuel relief for bikes, autos and 800cc cars

Pakistan's Prime Minister Shahbaz Sharif on Sunday announced a special relief scheme offering Rs100 per litre off petrol for motorcycles, rickshaws, Qingqi rickshaws and cars with engines of up to 800cc.

"In this hour of difficulty, we will not leave the public alone. To alleviate the burden of rising oil prices on users of motorcycles, rickshaws, Qingchis, and small vehicles, a special scheme is being initiated. Under the special relief scheme, petrol users of motorcycles, rickshaws, Chingchis, and vehicles up to 800cc will receive a relief of 100 rupees per litre," said a statement issued by the Prime Minister’s Office (PMO).

The US-Iran conflict in the Middle East has pushed global oil prices higher, while attacks from Yemen on Saudi energy facilities have introduced a fresh source of market risk, broadening concerns beyond Iran and the Strait of Hormuz.

To cope with the crisis, the government introduced a daily petroleum pricing mechanism in July, replacing the previous weekly system, as global oil prices became increasingly volatile amid geopolitical tensions. Since then, repeated price increases have pushed petrol to Rs375.82 per litre and high-speed diesel (HSD) to Rs403.32 per litre.

The PMO said the prime minister had taken immediate notice of the burden on the public caused by rising oil prices following recent tensions in the Middle East and the resulting increase in global oil prices.

Shahbaz said that the "government fully understands the burden being placed on the public by the increase in oil prices,” he said, adding: “We will not leave the people alone in this difficult time.”

"Owners of cars with engines of up to 800cc will receive the same relief on up to 30 litres of petrol per month," it said.

It further added that the scheme would be implemented in Islamabad from the night between Monday and Tuesday, while it would take effect across Pakistan, including Azad Jammu and Kashmir and Gilgit-Baltistan, from the night between Wednesday and Thursday.

"Registration for the relief scheme began on Sunday. The registration process will be explained to the public through an awareness campaign," the PMO said.

Shahbaz thanked the provinces for cooperating in providing information on motorcycles, rickshaws and small cars for registration under the scheme.

The latest relief scheme is not the first subsidy introduced by the government in response to surging fuel prices. In March, the federal and provincial governments agreed on a technology-based framework for providing fuel subsidies, after petrol and diesel prices were sharply increased amid the Middle East conflict.