The federal government is considering a monthly financial relief package of around Rs2,000 for motorcycle owners as rising petrol prices continue to put pressure on household budgets.
Prime Minister Shehbaz Sharif has given the go-ahead for the proposed relief scheme, which is expected to initially run for three months. Officials said the programme could be extended depending on the availability of funds and developments in the Middle East.
According to senior officials, the government is considering a monthly payment of approximately Rs2,000 for motorcyclists to help offset the impact of higher petrol prices. The final amount will be decided by the prime minister.
The proposal comes as the government faces growing criticism over rising fuel prices. Petrol is currently priced at around Rs376 per litre, while high-speed diesel costs around Rs403 per litre following sharp increases this week.
The government has raised petrol prices by Rs30 per litre and diesel prices by Rs25 per litre, increasing transportation and commuting costs for consumers and businesses.
At present, the government collects around Rs106 per litre in taxes on petrol, equivalent to approximately 28 per cent of its retail price. Taxes on diesel stand at around Rs101 per litre, or roughly 25 per cent of the retail price.
Officials noted that a Rs2,000 monthly payment would cover only about five litres of petrol at current prices, highlighting the limited scope of the proposed relief compared with the overall increase in fuel expenses.
The Finance Ministry has reportedly rejected calls from some cabinet members to reduce the petroleum levy and use part of the Rs430 billion contingency allocation to cushion consumers from higher fuel prices.
Budget documents show that Rs113 billion from the contingency fund was allowed to lapse during the previous fiscal year instead of being used for emergency relief.
Petroleum Minister Ali Pervaiz Malik had earlier proposed reducing the petroleum levy to Rs50 per litre while setting an annual revenue target of Rs1 trillion.
The proposed relief has also raised questions over whether support should be limited to motorcycle owners. Critics argue that small-car owners and public transport users are also facing higher transportation costs and inflationary pressure and could therefore require assistance.
The government plans to distribute the proposed compensation through a digital mechanism being developed by the Ministry of Information Technology. Information Technology Minister Shaza Fatima Khawaja said officials were finalising the details to implement the prime minister’s directions.
Meanwhile, Jamaat-e-Islami has announced a long march towards Islamabad on September 20, seeking a reduction in the petroleum levy and greater relief for consumers.
The proposed motorcyclist support programme is therefore likely to remain part of the wider debate over fuel prices, petroleum taxes and the government’s response to rising living costs.
