Petroleum Division Seeks Rs. 75 Billion for 3-Month Fuel Relief Scheme

The Petroleum Division in Pakistan has requested approval for a substantial Rs. 75 billion fuel relief package aimed at aiding 11.8 million users of motorcycles, three wheelers, and cars with engine capacities up to 800cc. The proposal was submitted to the Economic Coordination Committee on Sunday, requesting a Technical Supplementary Grant to fund the three-month scheme.

Additionally, Rs. 1.73 billion is sought to develop and operate a digital Fuel Pass System, raising the total proposed cost to Rs. 76.73 billion. This initiative comes in response to Prime Minister Shehbaz Sharif's directive to provide assistance to low-income groups grappling with rising fuel prices. The increased fuel costs have caused significant economic disruption and contributed to inflationary pressures, potentially leading to public unrest.

The government estimates that the scheme could cover 10 million motorcycle users, 800,000 three-wheeler users, and one million car owners with engines up to 800cc. The monthly subsidy cost is estimated at Rs. 20 billion for motorcycles, Rs. 1.6 billion for three-wheelers, and Rs. 3 billion for small cars, totaling Rs. 24.6 billion per month.

Consequently, the three-month package would necessitate Rs. 73.8 billion in subsidies, with the remainder financed by the requested technical grant. Beneficiaries would be registered users, not owners, who can register one vehicle using their Computerized National Identity Card number, vehicle registration number, and mobile phone number.

The Ministry of IT and Telecom would manage the relief through a digital Fuel Pass System, registering beneficiaries, issuing fuel tokens, validating transactions, and generating digital records for payments and account settlements. The IT ministry would share daily fuel token usage data with the Petroleum Division, which would authorize State Bank of Pakistan payments to petrol pumps based on previous day's transactions.

The Oil and Gas Regulatory Authority would provide participating petrol stations' bank account details, while the three ministries would jointly finalize the payment mechanism.