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Targeted Relief for Small Vehicle Users
Prime Minister Shehbaz Sharif on Sunday announced a special relief scheme to cushion the public from the impact of rising petrol prices, offering a discount of Rs100 per litre to motorcyclists, rickshaw and small-car users .
“There is an awareness of the burden the increase in oil prices has placed on the people,” Sharif said while announcing the scheme. “We will not leave the people alone in this difficult time,” he said.
Scheme Details
Under the scheme, motorcyclists, rickshaw and Qingqi users will receive a Rs100-per-litre relief on up to 20 litres of petrol per month. Owners of cars with engines up to 800cc will be eligible for the same Rs100-per-litre relief on up to 30 litres of petrol per month .
The scheme will benefit users of motorcycles, rickshaws, Qingqi three-wheelers, and small cars, according to the prime minister.
Implementation Timeline
The scheme will take effect in Islamabad from the night between Monday and Tuesday, while it will be rolled out across the country, including Azad Jammu and Kashmir and Gilgit-Baltistan, from the night between Wednesday and Thursday .
Registration for the special relief scheme has opened from Sunday, and an awareness campaign will be launched to inform eligible citizens about the programme .
Background: Rising Fuel Prices and Public Pressure
The announcement comes as petrol prices have risen sharply, increasing pressure on households and transport users. The government has been under growing pressure to provide relief from higher fuel costs as global oil prices have climbed amid the ongoing conflict in the Middle East .
Petroleum Levy Dispute
According to sources, the finance ministry has resisted calls to cut the petroleum levy and use a contingency fund to offset the resulting revenue loss . The government is currently charging a petroleum levy of Rs106 per litre on petrol, equivalent to around 28% of its retail price, while the levy on diesel stands at Rs101 per litre .
Several federal ministries have proposed lowering the levy, with any resulting revenue shortfall to be covered from the Rs430 billion contingency allocation in the current fiscal year. However, the finance ministry has argued that using contingency funds to reduce the petroleum levy could jeopardise Pakistan’s commitments under its International Monetary Fund programme .
The dispute comes as Jamaat-e-Islami has called for a march on Islamabad on September 20 to press the government to reduce the petroleum levy .
