Pakistan Approves Rs75bn Fuel Relief Package Amid Rising Petroleum Prices

September 14, 2026 at 8:16 PM
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ISLAMABAD: Pakistan’s government on Monday approved a Rs75 billion targeted fuel relief package for lower-income consumers amid rising petroleum prices, providing subsidies to eligible owners of two- and three-wheelers and cars up to 800cc.

The Economic Coordination Committee (ECC) of the Cabinet, chaired by Finance Minister Muhammad Aurangzeb, approved the package to provide targeted relief to lower-income consumers.

The top economic decision-making body also approved a restructuring framework for the Pakistan National Shipping Corporation (PNSC) and approving Rs3 billion for the purchase of 15 bullet-proof vehicles to strengthen security for the Shanghai Cooperation Organisation (SCO) summit to be hosted by Pakistan next year.

Under the Prime Minister’s Fuel Relief Scheme, owners of two- and three-wheelers will receive Rs500 per week, equivalent to five litres of fuel at a relief rate of Rs100 per litre.

Owners of cars up to 800cc will receive Rs1,000 for a 10-day period, based on consumption of 30 litres per month at the relief rate of Rs100 per litre. The scheme will be restricted to non-commercial users, with relief limited to one vehicle per user or owner.

The Ministry of Information Technology and Telecommunication will deploy and manage a Fuel Pass System (FPS) to digitally administer the scheme and ensure transparent delivery of the subsidy to eligible consumers.

Also Read: Pakistan Announces Fuel Relief Scheme for Bikers, Rickshaws and Small Cars

The ECC approved Rs75 billion as Technical Supplementary Grant (TSG) for implementation of the fuel relief scheme.

The committee also approved the Implementation Framework for restructuring the ownership and management control of the Pakistan National Shipping Corporation, as recommended by the Implementation Committee headed by the Minister for Privatisation.

In another major decision, the ECC approved the Draft Upgrade Agreement under the Pakistan Oil Refining Policy for Upgradation of Existing/Brownfield Refineries, 2023, as amended in August 2026.

The agreement will establish a framework for implementation and monitoring of refinery upgradation projects and associated incentives, with a five-year completion period for the projects.

The ECC also approved a proposal concerning the settlement of financial matters of Oil Marketing Companies (OMCs), including compensation for their unadjusted input sales tax claims for the period from July 2025 to June 2026 through the Inland Freight Equalization Margin (IFEM).

The arrangement will serve as an interim mechanism for settling the claims, subject to due diligence and verification by the concerned authority.

The committee deferred a proposal concerning standards and regulatory requirements for the commercial import of used vehicles, directing that recommendations of the committee constituted to review the Engineering Development Board vehicle import inspection regime be obtained before the matter is resubmitted.

The ECC also approved the export of 200,000 metric tonnes of surplus sugar, endorsing recommendations of the Steering Committee on Sugar with safeguards aimed at maintaining stability in domestic sugar prices.

Meanwhile, the ECC approved Rs3 billion through a Technical Supplementary Grant for the purchase of 15 bullet-proof sedan vehicles for the SCO Council Summit, which Pakistan will host in Islamabad in September 2027.

The vehicles were deemed necessary to ensure secure transportation of heads of state attending the high-profile summit

The ECC emphasized the need for timely and comprehensive preparations for the SCO summit and discussed security and transport arrangements witnessed during the recent heads of state SCO Summit in Kyrgyzstan, which it considered a model worth following.

Federal Ministers Rana Tanveer Hussain, Qaiser Ahmed Sheikh, Jam Kamal Khan, Sardar Awais Ahmad Khan Leghari, Ali Pervaiz Malik and Shaza Fatima Khawaja, Adviser to the Prime Minister on Industries and Production Haroon Akhtar Khan, Adviser to the Prime Minister on Privatisation Muhammad Ali, federal secretaries and senior officials attended the meeting.

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