KARACHI:

Sindh Chief Minister Murad Ali Shah on Monday inaugurated the People’s Motorcycle Fuel Subsidy Programme, demonstrating the registration process under which registered motorcycle owners will receive a subsidy of Rs57 per 20 litres of fuel. The provincial government will cover an additional Rs100 per litre.

In response to surging petrol prices and the ongoing energy crisis, the Sindh government announced on Friday a monthly subsidy of Rs2,000 for registered motorcyclists across the province. Public transport and goods transport operators will also receive monthly subsidies ranging from Rs70,000 to Rs100,000.

On Thursday, the government further increased petrol prices by Rs137 per litre to a record-high of Rs458.4. It was the second major increase in fuel prices in less than a month. However, on Friday night, PM Shehbaz announced a Rs80 per litre reduction in the petroleum levy on petrol.

During the demonstration for journalists, CM Shah highlighted that the scheme has officially started. “I am registering the first motorcycle to show the process,” he said. He also confirmed that the Rs500 transfer fee has been abolished.

To qualify for the subsidy, residents must have motorcycles registered in their name. Applications can be submitted through the Excise Department’s online portal, while a mobile application will become operational within three days. A guidance video explaining the registration process is also available on the Excise Department website.

Excise offices across Sindh will remain open until midnight, including on weekends, to ensure accessibility. Subsidy payments will be transferred directly into applicants’ bank accounts, and IBAN numbers must be provided during registration. CM Shah explained that once all required information is submitted, “a message and a tracking ID number will be received” to help applicants monitor the status of their subsidy.

To ensure accurate payments, he added, “Emails will be sent to Sindh Bank every three hours” to process the payments. He also warned that “payments will be halted if accurate information is not provided.” Ownership verification will include checking that the bank account matches the registered motorcycle. Accounts held with Sindh Bank will be confirmed within 24 hours, while verification and payment for accounts in other banks may take up to three days. A dedicated toll-free helpline has been established to assist applicants and ensure data accuracy throughout the registration process.

The programme comes after a significant surge in fuel prices. On Thursday, petrol prices were increased by Rs137 per litre to a record Rs458.4, marking the second major increase in less than a month. In response, Prime Minister Shehbaz Sharif announced on Friday night an Rs80 per litre reduction in the petroleum levy on petrol. The cumulative increase in petrol prices within a month now stands at 63%, while high-speed diesel has risen by 75%.

CM Shah emphasised that the initiative aims to provide financial relief to motorcycle owners amid rising fuel costs, while ensuring transparency and efficient disbursement of subsidies.

“We will sit with the federal government and decide about closing businesses soon, taking into account the situation in our province and in Karachi,” the Sindh CM said.

Speaking on the impact of rising fuel costs, Murad Ali Shah warned, “Due to expensive fuel, the prices of flour and pulses will rise.” They added, “We are not providing assistance to transporters but directly to poor passengers,” underlining the province’s focus on supporting the most vulnerable.

The chief minister also said the Sindh government was trying to ensure that “the poorest of the poor receive direct relief” and confirmed it would continue discussions with the federal government to align on policy measures.

He stressed that while the province respects federal authority, Sindh has sought to implement measures tailored to its own economic and social circumstances.

He said support for farmers would begin on Wednesday, with Rs3billion allocated for the initiative. The provincial government has also set aside Rs13.4b for a motorcycle subsidy programme aimed at easing the burden of rising fuel costs.

“The federal government will reimburse the provinces,” officials said, adding that coordination between the centre and provinces remains ongoing.

Sindh CM said between Rs3b and Rs4b would be spent to stabilise transport fares, while the Sindh government alone plans to allocate Rs14.3b for the transport sector. Nationwide, total spending on subsidies is expected to reach Rs55b. 

During talks with traders, the Sindh government presented the federal government’s proposals but did not offer its own. At the meeting, “only two trader groups made ending their protest conditional on reversing the price increase,” Murad Ali Shah said, while other associations assured the government they would not stage protests.

“Our proposal for a targeted subsidy for the poorest segments of society was not agreed upon by the other provinces and the federal government,” he added.