Pakistan Rolls Out Fuel Subsidy Plan Amid US-Iran Tensions Drive Oil Prices Higher

Pakistan's government has rolled out a fuel subsidy plan to cushion low-income motorists from surging oil prices. The scheme, announced by Prime Minister Shehbaz Sharif, provides a discount of Rs100 [$0.36] per liter for up to 20 liters of petrol a month for owners of motorcycles and three-wheelers.

Motorists with engines of up to 800cc can claim the same discount on up to 30 liters of petrol under the scheme. The government has also removed the minimum requirement for motorists to purchase five liters of fuel in a single transaction, allowing them to buy fuel in smaller quantities.

The subsidy plan aims to provide relief to low-income motorists who are struggling with the rising cost of living due to escalating oil prices. Pakistan's government decided to launch the scheme amidst tensions between the US and Iran, which has driven up global oil prices.