PM Shehbaz directs to include 20-year-old bikes, rickshaws in fuel relief scheme

On Friday, Prime Minister Shehbaz Sharif directed that motorcycles, rickshaws and vehicles registered after January 1, 2006 would be eligible for the government's recent fuel relief scheme. According to the Prime Minister's Office, these vehicles will now be able to benefit from the relief scheme as well.

The relief scheme was announced on September 13 to alleviate the burden caused by rising global oil prices. It provides a Rs100 per litre relief on petrol for owners of motorcycles, rickshaws, Qingqis, three-wheelers and vehicles with engines up to 800cc. Motorcycles, rickshaws and Qingqis can receive relief on 20 litres of petrol per month, while owners of small cars with engines up to 800cc will get the relief on 30 litres of petrol every month.

The fuel price crisis, triggered by renewed hostilities in the Middle East, has led to a significant increase in fuel prices over the past two months. The conflict between the US and Iran, as well as the threat from Houthi rebels disrupting trade via Bab al-Mandab, have both contributed to this issue.

However, the rollout of the relief scheme faced challenges on its first day. Many petrol pumps reportedly declined to honor the digital app, citing a lack of necessary systems to provide petrol at the reduced price of Rs100 per litre. The Pakistan Petroleum Dealers Association (PPDA) had previously expressed concerns about the subsidy disbursement mechanism, warning that dealers would have to face difficulties in recovering the amount owed to them.