Pakistan Approves Rs23 Billion Fuel Subsidy for Motorcycle and Rickshaw Owners

Islamabad — March 16, 2026
Amid rising fuel prices triggered by the ongoing Middle East conflict, the Pakistani government has announced a substantial relief package for its low-income citizens, approving a Rs23 billion subsidy specifically targeting motorcycle and rickshaw owners across the country.
Secretary Petroleum briefed the Senate Committee that the government has decided to allocate Rs23 billion — funds saved through its austerity policy — as a direct subsidy for owners of two-wheelers and three-wheelers, with approximately 30 million vehicles expected to benefit from the initiative۔
Officials confirmed that eligible beneficiaries will be identified and verified through the Benazir Income Support Programme (BISP) database, ensuring the subsidy reaches those who genuinely need financial assistance rather than being misused.
The Senate Committee was also informed that a special ministerial committee formed by the Prime Minister is monitoring the petroleum supply situation on a daily basis. Despite price hikes, the supply of petroleum products remains stable nationwide, with crude oil reserves sufficient for 11 days, diesel for 21 days, petrol for 27 days, LPG for 9 days, and JP-1 for 14 days.
The announcement comes at a critical juncture as the ripple effects of the Iran war continue to drive up global oil prices, disproportionately impacting Pakistan’s working class — particularly the millions who depend on motorcycles and rickshaws for their daily livelihoods.
The use of BISP data for subsidy distribution is being viewed as a positive step toward targeted welfare delivery, minimizing leakage and ensuring transparency in the disbursement process.