Rs50/litre subsidy to be given to individuals who own motorcycles, rickshaws, 800cc cars, and small vehicles
ISLAMABAD
Prime Minister Shehbaz Sharif announced on Sunday that low-income individuals will receive a petroleum subsidy of Rs50 per litre as part of a relief package. The subsidy will be available to those who own motorcycles, rickshaws, 800cc cars, and other small vehicles.
During a review meeting on the relief package, the premier emphasised that the programme will be implemented soon, and a comprehensive strategy will be formed in collaboration with relevant departments for effective implementation.
He noted that motorcycles, rickshaws, and small cars are primarily used by low-income individuals, and the subsidy would provide relief to those in need.
Despite economic difficulties, the government is committed to providing assistance to the poor, said the prime minister.
The review meeting was attended by Minister for Finance Muhammad Ishaq Dar, Advisor to PM Ahad Cheema, Special Assistant to PM Tariq Bajwa, Secretary Finance, Secretary Petroleum, and other high-ranking officials.
Minister of State for Petroleum Musadik Malik briefed attendees on the strategy for providing the subsidy.
The Express Tribune had earlier reported that the government was working on a Rs120 billion cross-subsidy plan to provide relief to the poor who have motorbikes but can’t afford the highly expensive fuel.
Accorind to the report by The Express Tribune, the government plans include charging the rich, who own expensive cars, Rs15 extra per litre of petrol to finance the cost of fuel subsidy for the poor. Sources had told that PM Shehbaz had tasked Musadik Malik to develop a mechanism for providing subsidised petrol to the poor motorcycle owners.
During a recent meeting of the cabinet, the premier had sought details from the state minister, who responded that multiple meetings had been held and a cross-subsidy mechanism had been developed.
Sources said that during the meetings, it was informed that a total cross-subsidy of Rs120 billion was required to provide cheaper petrol to motorcyclists. The cross-subsidy would be funded by the people owning expensive cars.
