The Petroleum Division has sought approval for a Rs. 75 billion fuel relief package aimed at supporting lower-income vehicle users. The proposal targets 11.8 million users of motorcycles, three-wheelers and cars with engine capacities of up to 800cc.
According to a summary submitted to the Economic Coordination Committee on Sunday, the division requested a Technical Supplementary Grant for a three-month relief scheme. It also sought Rs. 1.73 billion for the development and operation of a digital Fuel Pass System.
The total proposed funding for the initiative stands at Rs. 76.73 billion. The package follows Prime Minister Shehbaz Sharif’s directive to provide relief to citizens affected by rising fuel prices.
Millions of Vehicle Users May Benefit
The Petroleum Division said increasing fuel prices have created economic pressure and contributed to inflation. Officials also warned of growing public concerns linked to higher transportation and living costs.
Under the proposal, around 10 million motorcycle users could benefit from the scheme. The government also estimates coverage for 800,000 three-wheeler users and one million owners of small cars.
The estimated monthly subsidy cost is Rs. 20 billion for motorcycles, Rs. 1.6 billion for three-wheelers and Rs. 3 billion for small cars. As a result, the total monthly cost would reach approximately Rs. 24.6 billion.
Digital Fuel Pass System Proposed
The three-month subsidy package would require around Rs. 73.8 billion in direct relief payments. The remaining funds would support the technical infrastructure needed to run the programme.
Relief would be provided to vehicle users rather than registered owners. Beneficiaries would register one vehicle using their CNIC, vehicle registration number and mobile phone number.
The Ministry of IT and Telecom would develop and operate the digital Fuel Pass System. The platform would manage registrations, issue fuel tokens, verify transactions and maintain payment records.
Under the proposed mechanism, daily transaction data would be shared with the Petroleum Division. The division would then authorize the State Bank of Pakistan to release payments to participating petrol stations.
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