Pakistan Fuel Aid Reaches Millions but Leaves Some Behind, Experts Warn

Subsidies cushion soaring petrol costs, while exclusions raise questions over who benefits
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Image for illustrative purposes.[Engin akyurt / Unsplash]
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More than 9.5 million Pakistanis have received subsidised petrol through a government fuel relief programme designed to cushion lower-income households from sharply rising energy costs linked to the U.S.-Iran war, according to Information Technology Minister Shaza Fatima Khawaja.

The programme provides discounts to motorcycle and rickshaw users and owners of small cars, but economists say its exclusions mean some vulnerable households receive no direct assistance despite facing higher transport, food and living costs.

Targeted Fuel Support

The scheme offers a discount of 100 rupees per litre and distributes assistance through tokens obtained by text message and redeemed at fuel stations nationwide.

Motorcycle and three-wheeler users can receive 500 rupees weekly, capped at four tokens monthly, while owners of cars with engines up to 800cc can receive 1,000 rupees every 10 days, with three monthly tokens.

Registration was made free following complaints, while an earlier five-litre minimum purchase requirement was removed.

The government also dropped a requirement that motorcycles and three-wheelers be registered in the rider’s name.

More than 8.1 million tokens had been issued to two- and three-wheelers by late September, compared with fewer than 380,000 for cars.

The government approved 75 billion rupees for the programme’s first three months, through November, while monthly costs had risen to an estimated 35 billion to 40 billion rupees by late September.

Gaps and Constraints

Petrol prices have risen nearly 50 percent since the war began on February 28, climbing from 266 rupees per litre to nearly 395 rupees despite a partial rollback in April.

Inflation increased from 7 percent in February to 10.3 percent in September.

Critics note that vehicles above 800cc, diesel vehicles and public transport users are excluded, potentially leaving households without eligible vehicles exposed to broader price increases.

The programme also operates as Pakistan remains under a $7 billion International Monetary Fund programme.

Officials familiar with talks said the IMF wants relief limited to three months and instead routed through the Benazir Income Support Programme.

Economists also questioned the government’s 114-rupee-per-litre petroleum levy, arguing that reducing it could provide broader relief than the capped subsidy.

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