Government Considers Monthly Rs2,000 Fuel Subsidy Scheme for Motorcyclists Amid Spiraling Petrol Prices
ISLAMABAD: With the skyrocketing cost of domestic petrol, the federal government has begun preliminary discussions on the targeted relief measures it intends to implement to protect poor and middle section motorcycle riders from the impact of skyrocketing petrol prices.
The draft plan under discussion is to give a monthly subsidy of Rs2,000 directly to each registered motorcycle owner for the initial period of three months, official sources said. The Ministry of Petroleum under the direct instructions of Prime Minister Shehbaz Sharif has started working with the Ministry of Finance to prepare the implementation framework.
Proposed Delivery: Fuel app and IMF Fiscal constraints.
The financial aid is expected to be distributed electronically using a special “Fuel Relief App”, industry sources say. The monthly subsidy of Rs2,000 will help cover the cost of around 5 litres of petrol at the current petrol price.
But fiscal policy makers have important constraints. The Ministry of Finance has reportedly rejected proposals to cut the petroleum levy, or to tap into the Rs430 billion emergency relief fund, because of “rigid” structural benchmarks and binding fiscal conditions set by the International Monetary Fund (IMF).