Fuel Subsidy • Petrol

PM Shehbaz Has Launched a Rs 100 Per Litre Petrol Subsidy for Motorcycles, Rickshaws and Small Cars Up to 800cc. Here Is the Full Token System, the Quotas and When It Takes Effect

By Pakistan Petrol Prices Editorial

14 September 2026

Prime Minister Shehbaz Sharif has announced a Special Relief Scheme that gives a Rs 100 per litre subsidy on petrol to users of motorcycles, rickshaws, Qingqi rickshaws, and cars with engines up to 800cc. The subsidy is delivered through a digital token system: eligible citizens register their vehicle by SMS to short code 9771, then request a fuel token before each fill-up by sending TOK to the same number. The token is verified at the pump, and the subsidy is deducted from the price. The scheme takes effect in Islamabad at midnight on 14-15 September and nationwide at midnight on 16-17 September. The current petrol price is Rs 375.82 per litre, so eligible consumers will pay an effective Rs 275.82 per litre within the quota. Diesel is not covered.

What the scheme covers

The Special Relief Scheme, announced on Sunday by Prime Minister Shehbaz Sharif and activated digitally by the Ministry of Information Technology and Telecommunication in coordination with NADRA, the provinces, and the telecom operators, has three core components:

First, the scheme gives a Rs 100 per litre subsidy on petrol. The subsidy is the same for all eligible vehicle types, and is delivered as a discount at the pump rather than as a later cash transfer. At the current petrol price of Rs 375.82 per litre, eligible consumers pay an effective Rs 275.82 per litre within their quota.

Second, the scheme covers two categories of vehicle. Motorcycles, rickshaws, Qingqi rickshaws, and other two- and three-wheeled vehicles get a monthly quota of 20 litres at the subsidised price. Cars with engine capacities up to 800cc get a monthly quota of 30 litres at the subsidised price. The quota is reset every month, and any unused quota does not roll over.

Third, the subsidy is delivered through a digital token system managed by the Ministry of IT and Telecommunication. The token system uses NADRA’s CNIC database for identity verification, the provincial transport and excise departments for vehicle verification, and the telecom operators for SMS delivery. The system was developed jointly by the Ministry of IT, NADRA, and the four provinces over a compressed implementation window.

How to register

Registration is by SMS from a SIM registered in the applicant’s own name. The format of the registration SMS is:

REG [CNIC without dashes] [vehicle number without spaces or dashes] [provincial code] [vehicle registration date]

For example, a citizen with CNIC 42101-1234567-8, vehicle number ABC-123, in Punjab, registered on 15 March 2020, would send:

REG 4210112345678 ABC123 P 15032020 to **9771**

The provincial codes are: P for Punjab, S for Sindh, K for Khyber Pakhtunkhwa, B for Balochistan, I for Islamabad Capital Territory, A for Azad Jammu and Kashmir, and G for Gilgit-Baltistan.

After the registration SMS is sent, the system checks the CNIC against NADRA, the vehicle number against the provincial transport database, and the SIM registration against the telecom database. If all three checks pass, the system sends a confirmation SMS within a few minutes. If any check fails, the system sends a rejection SMS with the reason.

Each CNIC can register only one vehicle. The registration is valid until the CNIC is updated or the vehicle is sold or transferred. Re-registration is required if the CNIC or the vehicle registration changes.

How to get a fuel token

Before each fill-up, the registered citizen must request a fuel token. The format is:

TOK to **9771**

The system checks the registered CNIC, verifies that the monthly quota has not been exhausted, and sends back a token. The token is a numeric or alphanumeric code that the citizen shows at the petrol station. The token has a defined validity window, typically a few hours, after which it expires and must be re-requested.

The pump staff verifies the token on a terminal or via SMS verification. Once verified, the citizen can fill up to the quota amount at the subsidised price. If the citizen fills beyond the quota amount, the additional litres are charged at the regular pump price.

When the scheme takes effect

The rollout is staged:

• 14-15 September 2026 (night between Monday and Tuesday): The scheme takes effect in Islamabad Capital Territory.
• 16-17 September 2026 (night between Wednesday and Thursday): The scheme takes effect across the rest of Pakistan, including Azad Jammu and Kashmir and Gilgit-Baltistan.

The phased rollout is designed to give the digital system time to handle the initial surge of registrations and token requests, and to give the petrol stations time to install the verification terminal or update their procedures. Registration opened on Sunday 13 September, and the public awareness campaign is being run alongside the rollout.

How much the subsidy is worth

The maximum monthly benefit is straightforward:

• Two- and three-wheelers: 20 litres × Rs 100 = Rs 2,000 per month per eligible vehicle.
• Cars up to 800cc: 30 litres × Rs 100 = Rs 3,000 per month per eligible vehicle.

For a household with both a motorcycle and a small car, the combined maximum monthly benefit is Rs 5,000. For a household with one motorcycle only, the maximum monthly benefit is Rs 2,000. The benefit is delivered as a discount at the pump, not as a cash transfer, so the citizen does not need a bank account to receive it.

The total fiscal cost of the scheme depends on the number of eligible vehicles that actually register and consume their full quota. The Petroleum Division’s initial estimate places the fiscal cost at roughly Rs 75 billion per year if the scheme runs at full utilisation across the eligible fleet. The actual cost in the first few months is likely to be lower, as not all eligible vehicles will register immediately.

What is not covered

The subsidy applies to petrol only, not to diesel. Diesel is priced separately and remains at Rs 403.32 per litre. The subsidy also does not apply to:

• Cars with engine capacities above 800cc (such as most 1000cc and 1300cc sedans).
• Commercial freight vehicles (trucks, buses) that run on diesel.
• Tractors and other agricultural vehicles that run on diesel.
• CNG vehicles.
• Any vehicle that is not registered with the relevant provincial transport authority.

The targeting is deliberate. Motorcycles, rickshaws, and small cars are the dominant form of personal and small-commercial transport in Pakistan, and a Rs 100/litre subsidy on these vehicles delivers relief to the widest base of working-class and middle-class households. The targeting also keeps the fiscal cost manageable.

What this means for OMCs and dealers

For Pakistan’s oil marketing companies (OMCs) and dealers, the subsidy scheme introduces a new operational procedure at the pump. The verification of the token is an additional step in the transaction flow, and the OMCs will need to either install dedicated verification terminals or update their point-of-sale systems to handle the token check.

The scheme also changes the revenue calculation for the OMCs. The OMCs will sell the petrol at the regular ex-depot price (Rs 375.82 per litre in the current revision) to the dealer, and the dealer will sell to the consumer at the subsidised price (Rs 275.82 per litre). The subsidy difference will be settled between the government and the OMC through a separate mechanism, which the Ministry of Finance is finalising.

For dealers, the dealer margin is unchanged. The dealer continues to earn the standard margin on each litre sold, but the consumer-facing price is lower for eligible transactions. Dealers are expected to receive clear guidance from the OMCs and the Ministry of Finance on the settlement mechanism before the scheme goes live.

What to do if the SMS does not work

For citizens who send the registration SMS and receive a rejection, the typical reasons are: CNIC mismatch between the SIM and the database, vehicle number not found in the provincial transport database, or SIM not registered in the applicant’s name. In each case, the rejection SMS will indicate the reason.

For citizens whose CNIC has been updated recently, the NADRA record may not yet reflect the update. The Ministry of IT has said that the registration system will be updated as NADRA records are refreshed, and that citizens who have recently updated their CNIC should wait a few days before registering.

For citizens who have a valid registration but cannot get a fuel token, the typical reasons are: monthly quota exhausted, token expired, or token not yet active. The Ministry of IT has set up a helpline for issues that cannot be resolved through SMS verification.

The bottom line

PM Shehbaz has announced a Rs 100 per litre petrol subsidy for motorcycles, rickshaws, Qingqis, and cars up to 800cc. The subsidy is delivered through a digital token system managed by SMS to 9771. Eligible consumers pay an effective Rs 275.82 per litre within the quota, with a monthly cap of 20 litres for two- and three-wheelers and 30 litres for small cars. The scheme takes effect in Islamabad at midnight on 14-15 September and nationwide at midnight on 16-17 September. Registration is open. Diesel is not covered.