Pakistan launches fuel subsidy for 9 million low‑income motorists amid US‑Iran war

The programme, approved by Prime Minister Shehbaz Sharif, aims to keep fuel affordable for vulnerable commuters.

By Felo News Desk · Published Wed, 07 Oct 2026 03:48:10 GMT

Pakistan’s government has introduced a fuel‑subsidy programme for more than 9 million low‑income motorists, officials said on Tuesday, as the U.S.–Iran war drives up energy prices.

What happened

The scheme, approved by Prime Minister Shehbaz Sharif last month, offers discounts on petrol and diesel to eligible motorcycle riders, rickshaw operators and owners of small cars. Officials said the subsidies are intended to let beneficiaries purchase fuel at pre‑war prices, after fuel costs have risen by more than 50% since the conflict began earlier this year.

What the reports add

The Independent noted that the programme was unveiled after the Jamaat‑e‑Islami party threatened to march on Islamabad demanding tax cuts on fuel.
The New York Post reported that Information Technology Minister Shaza Fatima Khawaja described the rollout as the country’s first nationwide use of digital tokens to deliver targeted fuel aid.
Both outlets quoted Petroleum Minister Ali Pervaiz Malik saying the assistance reaches over 9 million people.
Details of the token system: eligible users receive a text‑message token, present it at participating stations, and staff verify eligibility before applying the discount. Motorcyclists and three‑wheelers get a weekly discount of 500 rupees (up to four tokens per month), while cars up to 800 cc receive 100 rupees per litre on a limit of 10 litres every ten days, with a maximum of three tokens per month.
Amir Shahzad, a commuter from Islamabad, said the subsidy covers his daily travel but warned that trips to other cities still require paying market rates.
The Independent mentioned that Pakistan’s reliance on IMF loans includes pressure from the fund to reduce broader subsidies, such as on wheat.

What was said

“We have ensured the process remains seamless and agile for citizens,” Khawaja told the New York Post.

Petroleum Minister Ali Pervaiz Malik told the Independent that “more than 9 million people are benefiting” from the subsidies.

How it came about

The subsidy programme follows months of rising inflation and fuel‑price pressure in Pakistan, a trend mirrored in other regions. Earlier this month Felo News reported on Germany’s decision to cut fuel taxes in response to the same Middle‑East conflict (Germany to Cut Fuel Taxes Amid Middle East Oil Shock), underscoring the global ripple effects of the war on energy costs.

Key facts

Pakistan launched a fuel‑subsidy programme for over 9 million low‑income motorists. (independent.co.uk)
The programme was approved by Prime Minister Shehbaz Sharif last month. (independent.co.uk)
Fuel prices in Pakistan have risen by more than 50% since the U.S.–Iran war began. (independent.co.uk)
Information Technology Minister Shaza Fatima Khawaja said the rollout uses new technology and is seamless. (nypost.com)
Petroleum Minister Ali Pervaiz Malik said more than 9 million people are benefiting. (independent.co.uk)