Subsidy proposed for small vehicles amid soaring fuel prices

Subsidy proposed for small vehicles amid soaring fuel prices

Prime Minister Shehbaz Sharif on Sunday announced a special fuel relief scheme aimed at reducing the impact of soaring petrol prices on the public amid escalating tensions in the Middle East.

According to the Prime Minister’s Office, the premier took notice of the increasing financial pressure on citizens following a surge in global oil prices caused by the regional conflict.

“The government is fully aware of the burden being placed on the people due to the increase in oil prices,” the prime minister said, assuring citizens that they would not be left alone during the difficult period.

Renewed hostilities in the Middle East have disrupted key oil supply routes and pushed global fuel prices higher. The situation around the Strait of Hormuz, amid the US-Iran conflict, and growing threats to shipping through Bab al-Mandab have added to concerns over global energy supplies.

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 had previously introduced a mechanism in April to provide subsidised petrol through a mobile application as part of efforts to support low-income citizens facing higher fuel costs.

Under the newly announced scheme, motorcycle, rickshaw, Qingqi, three-wheeler and small-car owners will receive a Rs100 per litre subsidy on petrol.

Motorcycle, rickshaw, Qingqi and other two- and three-wheeler users will be eligible for the subsidy on up to 20 litres of petrol per month.

Owners of cars with engines of up to 800cc will receive the Rs100-per-litre relief on up to 30 litres of petrol per month.

The scheme will be launched in Islamabad from the night between Monday and Tuesday and expanded nationwide, including Azad Jammu and Kashmir and Gilgit-Baltistan, from the night between Wednesday and Thursday.

Registration for the relief programme opened on Sunday.

The prime minister thanked provincial governments for providing information on motorcycles, rickshaws and small vehicles to facilitate the registration process.

The Ministry of Information Technology and Telecommunication has developed the registration system in collaboration with provincial departments, the National Database and Registration Authority (Nadra) and telecom operators.

Vehicle verification has been automated through coordination with provincial transport and excise departments.

To register, applicants must send an SMS from a SIM registered in their own name containing their CNIC number without dashes, vehicle registration number without spaces or dashes, provincial code and vehicle registration date.

Applicants will receive a confirmation message once their registration is successfully completed.

After registration, eligible users must send TOK to 9771 to obtain a fuel token. The token will then be presented and verified at participating petrol stations before the subsidised petrol is provided.

The facility will initially become available in Islamabad from Monday night and at petrol stations across the rest of the country from Wednesday night.

The IT ministry said the initiative was being implemented on the prime minister’s special directives and was aimed particularly at supporting working-class citizens and reducing the impact of higher petrol prices on household budgets.

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