ISLAMABAD: Petroleum Minister Ali Pervaiz Malik defended the government’s targeted petrol subsidy on Monday, emphasizing that the Rs100 per litre relief surpasses the amount collected through the petroleum levy. He explained that the scheme aims to shield low-income consumers from escalating fuel prices.

Speaking alongside Information Technology Minister Shaza Fatima and Information Minister Atta Tarar, Malik revealed that Prime Minister Shehbaz Sharif allocated Rs130 billion for this initiative. He also noted that consultations were held with all provincial chief ministers before finalizing the relief mechanism.

“We have united all stakeholders to design a targeted relief system,” Malik stated, highlighting the government’s priority to maximize protection and assistance for the public. He added that the system could not be based solely on individual demands, especially as Pakistan imports approximately 90 percent of its energy, with petroleum prices influenced by regional conflicts and global market fluctuations.

Regarding eligibility, IT Minister Fatima explained that the subsidy would provide Rs100 per litre relief for motorcycle riders and owners of vehicles with engines up to 800cc. Motorcycle users can claim the subsidy on up to 20 litres of petrol monthly, while small car owners are eligible for up to 30 litres.

To ensure accessibility, the government introduced an SMS-based registration system allowing people without smartphones to benefit. Eligible applicants must send their details to 9771 from a mobile number registered in their own name, with the CNIC and SIM card belonging to the same person. Fatima clarified that separate CNIC submission would not be required.

Motorcycle users will be able to claim the subsidy once per week, with the system designed to reduce queues at petrol stations.

Information Minister Atta Tarar announced that the subsidy rollout began in Islamabad shortly after midnight on Monday. Coordination between relevant institutions and the Finance Ministry is ongoing to implement the scheme effectively.

Tarar emphasized that the package targets deserving consumers, contrasting it with a broad petroleum levy reduction that would also benefit wealthier motorists who do not require assistance. He urged the opposition to contribute suggestions for improving the mechanism.

In a significant development, the government framed this package as a focused intervention for those most impacted by rising fuel costs, rather than a universal cut that would provide equal benefits regardless of income.