ISLAMABAD: Prime Minister Shehbaz Sharif has announced a subsidy on petrol for users of small cars, two and three-wheelers to help reduce the financial burden of rising petroleum prices on the public, his office said on Sunday, days after Pakistan hiked prices of petroleum products due to the ongoing United States (US) and Iran conflict.

Pakistan has raised fuel prices over the past few weeks consistently, with the latest surge coming on Friday as the government raised the price of high-speed diesel to Rs403.32 [$1.46] per liter and petrol to Rs375.82 [$1.36] per liter till Sept. 14. The price surge came as Brent crude traded above $105 a barrel on Friday, amid persistent concerns over Middle East supply disruptions and shipping through the Strait of Hormuz and Red Sea.

Sharif’s office announced that under the “Special Relief Scheme,” a subsidy of Rs100 per liter on petrol will be provided to users of motorcycles, rickshaws, qingqis and vehicles up to 800 cc (cubic capacity).

“The government is fully aware of the burden being placed on the public due to the increase in oil prices,” Sharif was quoted as saying. “We will not leave the people alone in this difficult hour.”

The Prime Minister’s Office (PMO) said a subsidy of Rs100 [$0.36] per liter will be provided on 20 liters of petrol per month for two-wheelers and three-wheelers. These include motorcycles, rickshaws, and qingqis.

Similarly, owners of small vehicles, with up to 800 cc, will be provided with a relief of Rs100 per liter on 30 liters of petrol per month, the PMO said.

“Its implementation within the limits of Islamabad will take effect on the night between next Monday and Tuesday, while across Pakistan, including Kashmir and Gilgit-Baltistan, it will take effect on the night between Wednesday and Thursday,” Sharif’s office added.

The PMO said registration for the scheme has been launched today, adding that its procedure will be communicated to the public through an awareness campaign.

This is the second fuel subsidy announced by Islamabad this year due to the ongoing US-Iran war. Pakistani federal and provincial authorities announced multi-level relief in April to protect consumers from surging fuel costs, rolling out free transport, fare freezes and targeted subsidies as global oil prices rose.

Global oil prices refuse to come down as tensions in the Middle East spiraled to Yemen this week. The Iran-aligned Houthis reached the ⁠strategic island ‌of Perim ‌in the ‌Bab Al-Mandab ‌strait on Friday, four Yemeni government sources told ‌Reuters, moving to tighten ⁠their grip ⁠on a vital global shipping route in the widening Middle East war.

The Bab Al-Mandab Strait offers a narrow entrance to the Red Sea and serves as a key conduit for international shipping.

Yemen’s military warned on Thursday that if the Iran-backed group gained control of the coast along the strategic waterway, it would threaten freedom of maritime navigation, international trade and the flow of energy supplies.