Pakistan fuel relief: Who gets cheaper petrol and how much?

Dubai: Millions of Pakistanis who depend on motorcycles, rickshaws and small cars for their daily commute or livelihood are being offered subsidised petrol under a special relief scheme introduced by Prime Minister Shehbaz Sharif to cushion households from rising fuel costs.

The Prime Minister’s Special Relief Scheme targets motorists who are particularly vulnerable to increases in petrol prices, including motorcycle riders, rickshaw and Qingqi drivers and owners of cars with engines of up to 800cc.

The programme comes as higher global oil prices, fuelled by regional tensions, put renewed pressure on oil-importing countries such as Pakistan and increase transport costs for households already managing tight budgets.

Under the scheme, motorcycle, rickshaw and Qingqi users can receive Rs500 (about Dh6.60) in petrol relief every week, available through four fuel tokens each month, according to the Prime Minister’s office.

That works out to potential relief of Rs2,000 (about Dh26.50) a month for eligible two- and three-wheeler users.

The government has also removed an earlier requirement that beneficiaries purchase at least five litres of petrol to qualify for the subsidy.

That means the Rs500 benefit can now be used even for smaller purchases – an important change for low-income workers who often buy fuel in small quantities.

For example, if an eligible rider buys two litres of petrol costing Rs780 (about Dh10.35), the Rs500 subsidy would reduce the amount paid by the rider to just Rs280 (about Dh3.70).

Owners of eligible cars with engines of up to 800cc can receive petrol at Rs100 (about Dh1.33) per litre below the prevailing price for up to 10 litres every 10 days.

This means a motorist can save Rs1,000 (about Dh13.25) on each 10-litre allocation.

With three subsidised fuel tokens available each month, an eligible small-car owner could receive relief of up to Rs3,000 (about Dh39.75) a month on 30 litres of petrol.

The scheme is particularly aimed at people whose vehicles are closely linked to their income – from delivery riders and small traders to rickshaw and Qingqi drivers transporting passengers in cities and towns.

Many of these workers may not be covered by conventional social welfare programmes but can be disproportionately affected when fuel prices rise because transport is essential to their livelihood.

The government has also widened eligibility following feedback from users.

The age limit for motorcycles, rickshaws and Qingqis has been extended from 15 to 20 years, meaning eligible vehicles registered on or after January 1, 2006 can now be included.

Registration through the designated SMS service has also been made free, while the five-litre minimum purchase condition for two- and three-wheelers has been abolished.

The changes are intended to ensure that workers who can afford to buy only small quantities of petrol at a time are not excluded from the benefit.

For example, applicants from Sindh use the letter S for the province.

Once registration is confirmed, the beneficiary sends TOK to 9771 before going to a participating petrol station to obtain a fuel token.

The digital system checks the applicant’s CNIC, mobile SIM registration and vehicle details before issuing a unique token, helping prevent duplicate claims and misuse of the subsidy.

A round-the-clock control room is also monitoring registrations, fuel tokens and complaints.

The Ministry of Information and Broadcasting has, meanwhile, launched an awareness campaign across television, radio, print and digital platforms, while teams at petrol stations are helping motorists understand the registration and redemption process.

The government says it has also introduced austerity measures within the federal administration to reduce expenditure and fuel consumption as it seeks to direct resources towards lower- and middle-income households.

For the government, the programme could also provide a model for delivering future targeted assistance digitally rather than relying on broad subsidies that benefit consumers regardless of income.