Pakistan’s federal government is considering giving a targeted petrol subsidy to people who use motorcycles and three-wheeled vehicles. Under the proposed plan, selected users may receive 20 to 30 litres of subsidized petrol every month, and the system will likely work through QR codes. An official announcement is expected very soon.
To implement the plan, the government has asked the provinces to provide Rs154 billion. During a recent high-level meeting, Finance Minister Mohammad Aurangzeb said that the country currently has enough fuel supplies until May 10. He also said that a final decision about petrol and diesel prices will be taken next week in an important meeting that will include the President, the Prime Minister and the chief ministers of all four provinces.
The proposal is being seen as a major change in Pakistan’s fuel policy, as it aims to give relief to millions of motorcycle and rickshaw users while also dealing with the country’s economic challenges.
Prime Minister Shehbaz Sharif has already rejected a proposal to increase petrol prices by Rs95 per litre and diesel prices by Rs203 per litre. Instead, he decided to absorb the financial burden to reduce pressure on the public.
Because of the global fuel crisis caused by the conflict involving the US, Israel and Iran, the government has also introduced austerity measures and is planning to launch a mobile app-based quota system for low-income users.
The Prime Minister said petrol and diesel are currently being sold in Pakistan at much lower prices than international rates, which has saved the public Rs125 billion in the past three weeks. He also asked citizens to practice personal austerity and work together during this difficult time.
