Pakistan Rolls Out Petrol Subsidy Amid Ongoing US-Iran Conflict

Pakistani Prime Minister Shehbaz Sharif has announced a petrol subsidy for users of small cars, two and three-wheelers to help alleviate the financial burden caused by rising petroleum prices. The decision comes after Pakistan increased fuel prices due to the ongoing US-Iran conflict, which has driven up global oil prices.

The 'Special Relief Scheme' will provide a subsidy of Rs100 per liter on petrol for users of motorcycles, rickshaws, qingqis and vehicles up to 800 cc. This means that two-wheelers and three-wheelers will receive a Rs100 [$0.36] per liter subsidy on 20 liters of petrol per month, while owners of small vehicles with up to 800 cc capacity will get the same subsidy on 30 liters of petrol per month.

The price surge came as Brent crude traded above $105 a barrel amid concerns over Middle East supply disruptions and shipping through the Strait of Hormuz and Red Sea. This is the second fuel subsidy announced by Islamabad this year due to the ongoing US-Iran war, with the first one rolled out in April.