Petroleum Prices: Rs 300 bln subsidy on the card

ISLAMABAD: The government has requested to the provinces for financial cooperation to extend up to Rs 300 billion targeted subsidy to the public, sources at Ministry of Finance said on Saturday.

The federal government has requested to the provinces for allocation of Rs 154 billion for the subsidy scheme in view of the rising petroleum prices.

Sources at the ministry said that the government intends to provide targeted subsidy to ensure cheaper fuel for two-wheelers and three-wheelers in country.

“The first option is to transfer the burden of oil prices in the global market directly to the consumers,” sources said.

“The second option is to provide 20 litres fuel for motorbikes and 30 litres for rickshaws on subsidized price,” according to sources.

Ministry sources said that Rs 300 billion amount is required to fund the proposed targeted subsidy scheme for six weeks.

A meeting of the President, Prime Minister and Chief Ministers of provinces, has been expected next week to take a final decision over the matter, sources added.

The federal government has finalized a plan to provide fuel relief to low-income citizens, specifically targeting motorcyclists and rickshaw drivers, in response to the ongoing energy crisis stemming from regional geopolitical tensions.

Following government directives, the Ministry of Information Technology has developed a specialized mobile app to ensure the transparent distribution of subsidized fuel.