The Economic Coordination Committee (ECC) of the federal cabinet on Monday approved Rs. 75 billion for the Prime Minister’s Fuel Relief Scheme to help lower-income consumers cope with higher petrol prices.
Under the scheme, users of motorcycles and other two- and three-wheelers will get Rs. 500 per week in fuel relief, based on 5 litres of petrol at Rs. 100 per litre.
Owners of cars with engines up to 800cc will receive Rs. 1,000 every 10 days, based on 30 litres of petrol per month at Rs. 100 per litre.
The subsidy will be available only to non-commercial users and limited to one vehicle per person.
The Ministry of IT and Telecom will operate the Fuel Pass System (FPS), which will be used to digitally distribute the relief to eligible consumers.
The government says the digital system will help improve transparency and ensure that the subsidy reaches the intended beneficiaries.
The Rs. 75 billion allocation has been approved as a Technical Supplementary Grant (TSG) for the scheme.
The relief package was introduced after a sharp increase in petrol prices, which has raised fuel costs for households and transport users.
By limiting the scheme to smaller vehicles and non-commercial users, the government aims to focus the subsidy on consumers most affected by rising fuel prices.
