PM Shehbaz Announces Rs100‑per‑Litre Fuel Relief for Motorcycles, Rickshaws and Small Cars
The federal government will subsidise Rs100 per litre of petrol for two‑ and three‑wheelers (up to 20 L/month) and for vehicles up to 800 cc (up to 30 L/month) to cushion the impact of rising global oil prices.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Automobile and Transport sectors benefit from lower fuel costs, creating a Buy bias for related tickers.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- AutomobilePositively affected
- TransportPositively affected
Companies
Mentions in This Briefing
Sectors: Automobile, Transport — Positive · Buy bias. PSX tickers: GGI, INDU, PSO. Automobile and Transport sectors benefit from lower fuel costs, creating a Buy bias for related tickers.
Full Story
Open on Business Recorder## Government unveils targeted fuel relief
Prime Minister Shehbaz Sharif announced a special fuel‑support programme aimed at low‑income commuters using motorcycles, rickshaws and small‑engine cars. The scheme provides a Rs100 per litre subsidy on petrol purchases – up to 20 litres per month for two‑ and three‑wheelers and up to 30 litres per month for cars with engines of 800 cc or less.
## Implementation timeline
The relief will start in Islamabad on the night of Monday‑Tuesday and will be rolled out nationwide, including Azad Jammu and Kashmir and Gilgit‑Baltistan, from the night of Wednesday‑Thursday. Registration opened on Sunday, with details to be disseminated through a public awareness campaign.
## Context of rising oil prices
The measure follows a fourth consecutive hike in petroleum prices – Rs3.05 per litre for petrol and Rs5.37 per litre for high‑speed diesel – imposed earlier in the week. While Brent crude fell modestly on Friday, it remains above USD 104 a barrel, and US diesel prices hit record highs amid Middle‑East shipping disruptions.
## Provincial support
Earlier this year, Punjab and Sindh announced complementary relief packages, including free public transport in Punjab and a Rs2,000 monthly cash subsidy for registered motorcyclists in Sindh. The federal scheme builds on those efforts and aims to digitise vehicle data for smoother future assistance.
## Expected market impact
By lowering fuel costs for a large base of low‑income commuters, disposable income may rise, supporting demand for small‑car and motorcycle manufacturers as well as transport service providers.
## What investors should watch
The relief is expected to benefit companies linked to the automobile and transport sectors, while the broader market may see a modest uplift in consumer sentiment.