ISLAMABAD: The federal government has approached provincial authorities for financial collaboration to implement a targeted fuel subsidy amounting to Rs 300 billion, aimed at easing the burden of rising petroleum prices on the public. The Ministry of Finance has requested provinces to allocate Rs 154 billion towards this subsidy scheme as part of the broader relief effort.
The subsidy plan focuses on providing affordable fuel specifically for two-wheelers and three-wheelers, which are widely used by low-income groups. Officials outlined two primary approaches under consideration: one involves passing the global oil price increases directly to consumers, while the alternative proposes offering subsidized fuel quantities of 20 litres for motorcycles and 30 litres for rickshaws.
Funding for the proposed scheme is expected to cover a six-week period, with the total required amount estimated at Rs 300 billion. In a significant development, a high-level meeting involving the President, Prime Minister, and provincial Chief Ministers is scheduled for next week to finalize the subsidy framework.
In response to the ongoing energy crisis exacerbated by regional geopolitical tensions, the government has prioritized fuel relief for economically vulnerable groups, particularly motorcyclists and rickshaw drivers. Meanwhile, the Ministry of Information Technology has developed a dedicated mobile application to facilitate transparent and efficient distribution of the subsidized fuel, ensuring accountability in the process.
