ECC Approves Rs75bn Funding for PM's Targeted Fuel Relief Scheme

ISLAMABAD: The Economic Coordination Committee of the Cabinet has approved Rs75 billion in supplementary funding for the federal government's targeted fuel relief programme, clearing a major financial requirement for a scheme designed to cushion eligible households from the impact of higher petrol prices. The decision was taken on Monday at a meeting chaired by Finance Minister Muhammad Aurangzeb.

The approved amount will be provided as a Technical Supplementary Grant for implementation of the programme announced by Prime Minister Shehbaz Sharif. The Petroleum Division placed the proposal before the committee after the recent increase in petroleum prices intensified pressure on motorists, particularly people relying on motorcycles, rickshaws and small cars for daily transport.

Under the approved mechanism, eligible users of two- and three-wheelers will receive relief worth Rs500 per week, covering five litres of petrol with a Rs100-per-litre benefit. Owners of cars with engine capacity of up to 800cc will be entitled to Rs1,000 of relief every 10 days, with their overall eligibility calculated on a monthly limit of 30 litres at the same Rs100-per-litre benefit.

The programme is restricted to non-commercial users and allows relief for only one vehicle per eligible user or owner. Officials have designed the restrictions to keep the subsidy focused on smaller consumers rather than extending it across the entire fuel market. Petroleum Minister Ali Pervaiz Malik said earlier on Monday that the government expects to spend Rs25 billion per month on the programme as it seeks to protect financially vulnerable segments despite constrained public resources.

Digital verification will be central to the rollout. The Ministry of Information Technology and Telecommunication has been assigned responsibility for deploying and managing the Fuel Pass System, which will administer eligibility and disbursement. Applicants are required to have a valid CNIC, a mobile SIM registered in their own name and vehicle details that can be verified through the relevant registration records.

The registration system uses the 9771 SMS service. After registration and verification, beneficiaries will be able to request a token before purchasing fuel. Two- and three-wheeler users can claim the benefit on five litres at a time, while eligible small-car owners can use a token for 10 litres. The programme is scheduled to begin in Islamabad from midnight between September 14 and 15, followed by a wider rollout across Pakistan, including Azad Jammu and Kashmir and Gilgit-Baltistan, from midnight between September 16 and 17.

The fuel decision came during a broader ECC meeting that also approved a framework for restructuring the ownership and management control of Pakistan National Shipping Corporation. The committee cleared a draft agreement covering upgrades of existing refineries under the amended refining policy, approved an interim mechanism for settling certain financial claims of oil marketing companies and authorised the export of 200,000 metric tons of surplus sugar subject to safeguards aimed at maintaining domestic price stability. A proposal concerning regulatory standards for commercial imports of used vehicles was deferred for further review.

The immediate focus now shifts to implementation of the Fuel Pass System, verification of applicants and the nationwide expansion of the subsidy. The scale of the programme makes accurate targeting and digital controls important both for households expecting relief and for management of the government's fiscal exposure. Authorities are expected to monitor registration, fuel-token use and distribution as the scheme moves from approval into full operation.