Pakistan fuel subsidy reaches 9.5 million, but eligibility leaves gaps
The petrol discount has reached millions, the government says, while people relying on public transport, diesel vehicles and larger cars fall outside its rules.
More than 9.5 million people have received subsidised petrol under Pakistan’s fuel relief scheme, Information Minister Shaza Fatima Khawaja told Al Jazeera. Launched in September as fuel prices rose, the programme offers a capped discount to eligible motorcycle, rickshaw and small-car users.
The discount is 100 rupees per litre. Two- and three-wheeler users can receive up to 2,000 rupees a month, while eligible cars with engines up to 800cc are capped at 3,000 rupees. After complaints, the government made registration free, removed the five-litre minimum purchase and dropped the requirement that two- and three-wheeler users own the vehicle.
The scheme’s reach remains bounded by its eligibility rules. Public transport users, diesel vehicle users and owners of larger cars are excluded. Economists cited by Al Jazeera said this could leave some low-income households without the petrol discount while they continue to face higher transport and other costs.
The programme is also expanding in cost. Petroleum Minister Ali Pervaiz Malik said its monthly running cost had risen to 35–40 billion rupees by late September, from an initial estimate of 25–30 billion. The government approved 75 billion rupees for the first three months, through November.
Pakistan is in a $7bn International Monetary Fund programme, and an IMF team is in Islamabad for talks on fiscal commitments and fuel relief. Khawaja said the Fund required targeted support; officials familiar with the discussions told Al Jazeera it wanted relief capped at three months and channelled through the Benazir Income Support Programme. The reporting does not establish a final agreement.
