Web Desk: Federal government is preparing a targeted fuel assistance programme that would provide motorcycle owners with Rs2,000 a month to help offset the rising cost of petrol and diesel, while keeping the existing petroleum levy unchanged.
The proposed support, approved by Prime Minister Shehbaz Sharif for an initial three-month period, would amount to roughly five litres of petrol at prevailing prices.
Under the proposed arrangement, eligible motorcycle owners would receive monthly financial assistance rather than benefit from a reduction in fuel prices.
Government authorities are working on the mechanism for identifying beneficiaries and distributing the payments. The programme could be extended beyond its initial three months, but its continuation would depend on the availability of funds and developments in the Gulf conflict.
The measure comes as higher international crude prices continue to put pressure on domestic fuel costs.
While the government has moved towards targeted financial assistance, the Finance Ministry has remained opposed to reducing the petroleum levy.
The levy has become an important source of government revenue. Collections from petroleum products reached Rs1.567 trillion during the previous fiscal year, underscoring the financial implications of any decision to reduce the charge.
Consequently, rather than lowering the price of petrol for all consumers, the proposed programme would direct limited financial support towards a specific group of fuel users.
The government has linked the recent increase in domestic petroleum prices to conditions in international oil markets.
Officials have also pointed to the ongoing US-Israel conflict with Iran and its impact on regional energy markets as factors contributing to elevated crude prices.
As international oil prices remain under pressure, consumers in Pakistan continue to face higher fuel costs, increasing the burden on households and daily commuters who depend heavily on motorcycles.
The proposed monthly payment could offer some relief to motorcycle users, particularly lower-income commuters who rely on two-wheelers for transportation.
However, the assistance would not directly lower the retail price of petrol. At current rates, Rs2,000 would cover only around five litres, meaning frequent motorcycle users could still face substantial fuel expenses each month.
The plan has therefore raised a broader policy question: whether targeted cash payments can provide a sustainable response to rising fuel prices without addressing the underlying cost pressures.
For now, the government appears to be opting for targeted relief while preserving petroleum levy revenues, with the final implementation mechanism expected to determine how effectively the scheme reaches motorcycle owners.
