Sindh launches People's Motorcycle Fuel Subsidy Programme

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 would 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, Shah said that the scheme had officially started. “I am registering the first motorcycle to show the process,” he said. He also confirmed that the Rs500 transfer fee had 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," he said.

Shah said that excise offices across Sindh would remain open until midnight, including on weekends, to ensure accessibility, adding that subsidy payments would be transferred directly into applicants’ bank accounts, and IBANs must be provided during registration.

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." Shah said. 

The chief minister further said that a dedicated toll-free helpline had been established to assist applicants and ensure data accuracy throughout the registration process.

Shah emphasised that the initiative aimed 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, Shah warned, “Due to expensive fuel, the prices of flour and pulses will rise. 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 had sought to implement measures tailored to its own economic and social circumstances.

Shah said support for farmers would begin by Wednesday, with Rs3billion allocated for the initiative, saying the provincial government had also set aside Rs13.4 billion for a motorcycle subsidy programme aimed at easing the burden of rising fuel costs.

“The federal government will reimburse the provinces, and for this, the coordination between the centre and provinces is ongoing," he said.

Shah said Rs3-4 billion would be spent to stabilise transport fares, while the Sindh government alone planned to allocate Rs14.3 billion for the transport sector, adding "Nationwide, total spending on subsidies is expected to reach Rs55 billion."

The chief minister said that during talks with traders, the Sindh government presented the federal government’s proposals.

"Only two trader groups agreed to end their protest, on the condition that the price increase be reversed, while other associations assured the government they would not stage protests," he said.

Shah said that Sindh proposed to provide a targeted subsidy for the poorest segments of society only, but it was not agreed upon by the other provinces and the federal government.