Pakistan’s Rs100-a-litre fuel relief to cost up to Rs30b a month

Pakistan's newly implemented fuel relief program, announced by Prime Minister Shehbaz Sharif, could impose a significant financial burden on the government, costing between Rs25 billion and Rs30 billion each month, according to Petroleum Minister Ali Pervaiz Malik. The program, which offers a Rs100 per litre discount on petrol for motorcycles, small cars with engines up to 800cc, and two- and three-wheeler vehicles, would incur annual costs of up to Rs300 billion.

Eligible motorists, including motorcyclists, rickshaw and Qipchaq drivers, and owners of cars with up to 800cc engines, must register their CNIC number, vehicle registration number, province or city, and registration date with Pakistan's telecom number 9771. Registered users can then receive fuel tokens by sending the code "TOK" to the same number.

The government is seeking additional funding to finance the subsidy as Pakistan relies on foreign oil, with the central government estimating a weekly oil bill of $800 million. Deputy PM Ishaq Dar is coordinating with provincial governments to address potential impacts on public transport fares, while the authorities are also reviewing austerity measures to manage the additional fiscal cost.