Key Takeaways
- Petroleum Division seeks Rs. 75 billion for 3-month fuel relief scheme.
- Scheme targets 11.8 million users of motorcycles, three wheelers, and small cars.
- Total proposed funding includes Rs. 1.73 billion for digital Fuel Pass System.
The Petroleum Division has submitted a request for a Rs. 75 billion fuel relief package to the Economic Coordination Committee, targeting 11.8 million users of motorcycles, three wheelers, and small cars with engine capacities up to 800cc.
The proposed scheme, which is set to run for three months, is in line with Prime Minister Shehbaz Sharif’s directive to assist lower-income groups affected by rising fuel prices.
The government estimates that the scheme could cover 10 million motorcycle users, 800,000 three wheeler users, and one million users of small cars, with an estimated monthly subsidy cost of Rs. 20 billion for motorcycles, Rs. 1.6 billion for three wheelers, and Rs. 3 billion for small cars.
The total subsidy requirement for the three-month period is Rs. 73.8 billion, with the remaining Rs. 1.73 billion allocated for the development and operation of a digital Fuel Pass System.
Each user will be allowed to register one vehicle, using their Computerized National Identity Card number, vehicle registration number, and mobile phone number for verification.
The scheme will be managed through a digital Fuel Pass System developed and operated by the Ministry of IT and Telecom, which will register beneficiaries, issue fuel tokens, validate transactions, and generate digital records for payments and account settlement.
The IT ministry will send daily records of fuel tokens used at petrol stations to the Petroleum Division, which will then authorize the State Bank of Pakistan to make payments to participating petrol pumps based on the previous day’s transactions.
The Oil and Gas Regulatory Authority will provide the bank account details of participating petrol stations, while the Finance, Petroleum, and IT ministries will jointly finalize the payment mechanism.
