Govt Approves Rs. 75 Billion to Sell Cheap Petrol

On Monday, the Economic Coordination Committee (ECC) of the federal cabinet greenlit a substantial Rs. 75 billion allocation for the Prime Minister’s Fuel Relief Scheme. This initiative aims to provide targeted assistance to lower-income consumers facing the burden of soaring petroleum prices. Under the scheme, two- and three-wheeler owners will receive Rs.

500 per week, equivalent to 5 litres of petrol at the current rate of Rs. 100 per litre. Car owners with engines not exceeding 800cc will be granted Rs. 1,000 every ten days. The relief is calculated based on a monthly consumption of 30 litres of petrol at Rs. 100 per litre. However, the scheme is exclusively for non-commercial users and restricts the benefit to one vehicle per individual or owner.

The Ministry of IT and Telecom will be responsible for the digital deployment and management of the Fuel Pass System (FPS) to ensure the digital implementation of the scheme. The government asserts that this digital mechanism is designed to ensure the relief reaches eligible consumers while enhancing transparency and accountability.

The approved Rs. 75 billion will be provided as a Technical Supplementary Grant (TSG) for the execution of the fuel relief scheme. The government's strategy of focusing on smaller vehicles and limiting the benefit to non-commercial users is aimed at directing the subsidy towards consumers who are more vulnerable to the impact of higher fuel prices.