Petrol Relief Shehbaz announces Rs100 per litre subsidy for small vehicles

Prime Minister Shehbaz Sharif has announced a Petrol Relief scheme offering a discount of Rs100 per litre to owners of motorcycles, rickshaws, Qingqi rickshaws and cars with engines of up to 800cc.

The Prime Minister’s Office said the scheme aims to reduce the impact of rising fuel prices on people who rely on small vehicles for transport.

Under the scheme, owners of cars with engines of up to 800cc will receive relief on up to 30 litres of petrol per month. Motorcycle and rickshaw users will also qualify for the Rs100-per-litre relief.

The government introduced the measure as global oil prices continue to face pressure from geopolitical tensions in the Middle East. The US-Iran conflict and attacks targeting Saudi energy facilities have added to concerns about oil supplies and market stability.

Pakistan has already shifted to a daily petroleum pricing mechanism in response to increased volatility in international oil markets. Petrol has risen to Rs375.82 per litre, while high-speed diesel (HSD) stands at Rs403.32 per litre.

The PMO said Shehbaz had taken immediate notice of the pressure rising fuel prices were placing on the public.

“We will not leave the people alone in this difficult time,” the prime minister said, according to the statement.

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The relief scheme will be implemented in Islamabad from Monday night into Tuesday. It will take effect across the country, including Azad Jammu and Kashmir and Gilgit-Baltistan, from Wednesday night into Thursday.

Registration for the scheme began on Sunday. The government said it would launch an awareness campaign to explain the registration process to the public.

Shehbaz also thanked the provinces for cooperating by providing information on motorcycles, rickshaws and small cars for registration.

The latest measure follows an earlier technology-based fuel subsidy framework agreed by the federal and provincial governments in March after sharp increases in petrol and diesel prices.

Pakistan remains highly exposed to global oil price movements because petroleum products form one of the country’s largest import categories. Domestic refineries meet only part of national demand, with the remainder supplied through crude oil and refined-product imports.

Higher international oil prices increase Pakistan’s import bill, put pressure on foreign exchange reserves and can contribute to inflation.

Global oil markets remain sensitive to OPEC+ decisions, conflicts in the Middle East, sanctions on oil-producing countries and disruptions along key shipping routes such as the Strait of Hormuz and the Red Sea.

Petrol reached a record Rs458.40 per litre in early April after the government raised its price by Rs137 in a single revision.

The government later replaced the weekly petroleum pricing system with daily reviews as renewed US-Iran tensions increased uncertainty in global oil markets.

The daily pricing mechanism has faced criticism from transporters, businesses, opposition lawmakers and petrol pump owners, who have warned that frequent price changes could increase transport costs and make financial planning more difficult.