Prime Minister Shehbaz Sharif on Sunday announced a “relief scheme” for users of motorcycles, autos and vehicles of up to 800cc to “alleviate the burden” of rising global oil prices.

Renewed hostilities in the Middle East, which have resulted in disruption of major oil supply routes, have caused fuel prices to rise in the past two months. In addition to the crisis in the Strait of Hormuz due to the US-Iran war, trade via Bab al-Mandab — which has become a vital route for Saudi oil exports in recent months — is also facing a rising threat from Houthi rebels.

A statement issued by the Prime Minister’s Office (PMO) on Sunday said the premier took “immediate notice of the recent tensions in the Middle East and the resulting surge in global oil prices, which is placing an increased burden on the public”.

“The government is fully aware of the burden being placed on the public due to the increase in oil prices. In this hour of difficulty, we will not leave the public alone,” he was quoted as saying in the statement.

The PMO announced that a “special relief scheme” was being initiated for users of motorcycles, rickshaws, Qingqis and vehicles up to 800cc, under which they will “receive a relief of Rs100 per litre”.

The statement explained that those having two-wheeled and three-wheeled vehicles will get a relief of Rs100 per litre on a monthly quota of 20 litres, while those owning small vehicles of up to 800cc will get a relief of Rs100 per litre for a monthly quota of 30 litres.

The scheme will take effect in Islamabad from the night between Monday and Tuesday (12am on September 15) while in the rest of the country, including Azad Kashmir and Gilgit-Baltistan, the relief will be provided from the night between Wednesday and Thursday (12am on September 17).

The registration for the scheme has been initiated from Sunday (today), the PMO statement said.

The registration for the scheme has been launched today, and its procedure will be communicated to the public through an awareness campaign, the PMO statement said.

PM Shehbaz thanked the provinces for their cooperation in providing information about motorcycles, rickshaws, and small vehicles for registration in the scheme.

In a post on X, state-run PTV News said further details regarding the scheme, including the method for registration, could be accessed at pmfuelrelief.pk.

Speaking to Geo News, Petroleum Minister Ali Perzaiz Malik said the prime minister had decided to provide relief to the “most affected segment” of society.

“The prime minister decided to provide relief that is greater than removing the petroleum levy,” he contended.

Explaining the scheme, Malik said the relief would be provided on a monthly basis.

“This time, the user will register himself and get his token number at his home. The devices have been dispatched to the petroleum pumps; when the consumer shows the token, he will get the fuel at subsidised cost.”

Oil prices amid Mideast conflict

Petroleum prices have surged since the United States and Israel launched a war against Iran on February 28.

Tehran retaliated to US attacks by targeting sites in neighbouring Gulf countries, resulting in brief closures of some oil facilities. The conflict also effectively closed the Strait of Hormuz, through which a fifth of global oil used to flow.

After the latest hike on Friday, the price of petrol reached Rs375.82 per litre while high-speed diesel (HSD) cost Rs403.32 per litre. The government continues to levy Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.

Saudi Arabia also shut down its East-West pipeline recently after the vital oil conduit came under aerial attack, threatening to send energy prices even higher. Saudi oil buyers and traders have warned of a loss of up to 4 per cent of global supply if the country does not restart the pipeline within days.

The International Energy Agency (IEA) has said that global oil supply and demand will fall further than previously thought this year, as a lack of progress in ending the Iran war delays the return of normal Middle East flows into 2027 and sends fuel prices soaring.

In July, following renewed hostilities between Iran and the US, the government announced that fuel prices would now be fixed on a daily basis due to fluctuations in international market prices.

Prior to this, the government had been announcing weekly revisions to fuel prices since early March, alongside measures for the conservation of fuel. The federal government had also announced targeted relief measures in April to provide subsidised fuel.

The price of HSD has come down from a peak of Rs520.35 recorded on April 3. Its price had started rising from Rs281 per litre after the US-Iran war broke out on February 28. The petrol price had peaked at Rs458.41 on April 3 after beginning its upward trajectory from Rs266 in the first week of March.