ISLAMABAD: The Petroleum Division has proposed a Rs75 billion fuel relief scheme for 11.8 million users of two-wheelers, three-wheelers and cars up to 800cc, with the proposal to be placed before the Economic Coordination Committee (ECC) for consideration and approval.
Sources familiar with the matter said the Petroleum Division has circulated the proposal to the Finance Division, Ministry of Information Technology and Telecommunication (MoITT), Oil and Gas Regulatory Authority (OGRA) and State Bank of Pakistan (SBP) for their views and comments before placing it before the ECC.
The sources said the ECC would consider the proposed fuel relief scheme and the required financial allocation, adding that the scheme would not become operational unless the requisite approval process was completed.
Under the proposed scheme, around 10 million two-wheeler users, 800,000 three-wheeler users and one million users of cars with engine capacity up to 800cc would be eligible for fuel relief, bringing the total estimated beneficiaries to 11.8 million.
The proposed relief has been set at Rs100 per litre. Two- and three-wheeler users would be eligible for up to 20 litres of petrol per month, providing maximum relief of Rs2,000 per beneficiary each month.
Users of cars with engine capacity up to 800cc would be eligible for up to 30 litres per month, translating into maximum monthly relief of Rs3,000.
Sources said the scheme would have an estimated monthly fiscal impact of Rs24.6 billion, comprising Rs20 billion for two-wheelers, Rs1.6 billion for three-wheelers and Rs3 billion for cars up to 800cc.
For the proposed three-month period, the Petroleum Division has sought Rs75 billion through a Technical Supplementary Grant (TSG) to finance the fuel relief.
The sources said the estimated number of two-wheeler beneficiaries had been worked out after taking into account the overall motorcycle population and the number of operational vehicles.
Out of an estimated 34 million two-wheelers, around 40 per cent are considered retired, leaving approximately 20.6 million operational vehicles. Based on experience of the previous relief scheme, the number of beneficiaries has been estimated at 10 million.
The proposed relief would be delivered through a digital Fuel Pass System (FPS), which would be deployed and managed by MoITT.
The system would facilitate registration, issuance of fuel tokens, validation, transaction recording and settlement, with the mechanism designed to digitally track the relief provided to eligible users.
Sources said the user’s CNIC, vehicle registration number and mobile phone number would be used as controls against each vehicle. Under the proposed mechanism, the relief would be provided to the user rather than the vehicle owner, with one vehicle allowed against one user.
MoITT would maintain digital transaction records and provide daily logs showing fuel tokens consumed at individual petrol pumps. The Petroleum Division would use these records to authorise payments to petrol pumps through SBP.
OGRA would provide the relevant dealership and bank account details, while the detailed payment mechanism would be finalised by the Finance Division, Petroleum Division and MoITT.
The proposed scheme also includes a separate TSG of Rs1.73 billion for MoITT to operationalise the Fuel Pass System.
The amount would cover technology solutions, call centres, SMS services, software development and deployment, registration, token issuance, validation, settlement and third-party verification.
Sources said funds would be released through the Petroleum Division, with SBP making payments to designated petrol pumps on the basis of authorised daily digital records.
The proposed mechanism envisages the digital transaction log as the primary basis for payment and audit. Third-party audit would also be conducted on the basis of digital transaction records, while OGRA would provide safeguards against possible misuse by oil marketing companies, dealers and other stakeholders.
The sources said the proposed relief was aimed at providing targeted support to users of motorcycles, three-wheelers and small cars facing higher fuel expenses amid the recent surge in petrol prices.
The proposal is currently under consideration and has not yet been approved by the ECC. Its implementation would depend on approval of the scheme, the required financial allocation and completion of the proposed digital mechanism.
Prime Minister Shehbaz Sharif has announced the special petrol relief scheme under which users of motorcycles, rickshaws, Qingqis and cars up to 800cc will receive relief of Rs100 per litre, while the Petroleum Division has sought approval from the Economic Coordination Committee (ECC) for the proposed scheme and the required financial allocation. Under the scheme, two- and three-wheeler users would be eligible for relief on up to 20 litres of petrol per month, while users of cars up to 800cc would receive relief on up to 30 litres. The scheme is proposed to be implemented in Islamabad from the night between Monday and Tuesday and across Pakistan, Azad Jammu and Kashmir and Gilgit-Baltistan from the night between Wednesday and Thursday, with registration already opened.