Pakistan offers 100 rupees a litre off petrol for motorcycles, rickshaws and small cars
Prime Minister Shehbaz Sharif announced a relief scheme that cuts petrol by 100 rupees a litre for motorcycles, rickshaws and cars up to 800 cc, days after the government raised petrol by 3.05 rupees and diesel by 5.37 rupees a litre. Two- and three-wheelers get it on up to 20 litres a month, small cars on up to 30 litres. Registration opened on Sunday; the scheme starts in Islamabad on Monday night and nationwide on Wednesday night, with a 75 billion rupee budget for three months.
Economics & Markets··Midday
A 100 rupee discount on up to 20 or 30 litres a month
Pakistan's prime minister, Shehbaz Sharif, announced on Sunday a special relief scheme that gives users of motorcycles, rickshaws and cars with engines of up to 800 cc a discount of 100 rupees a litre on petrol. Two- and three-wheelers receive it on up to 20 litres a month and the owners of cars up to 800 cc on up to 30 litres a month. Registration for the nationwide scheme opened on Sunday, and the Prime Minister's Office said the scheme takes effect in Islamabad from the night between Monday and Tuesday and across Pakistan, including Azad Jammu and Kashmir and Gilgit-Baltistan, from the night between Wednesday and Thursday. The announcement came days after the government raised petrol by 3.05 rupees a litre and high-speed diesel by 5.37 rupees a litre; The Express Tribune puts petrol at 375.82 rupees and high-speed diesel at 403.32 rupees a litre after the repeated increases that followed the switch to daily fuel pricing in July.[1], [2]
A 75 billion rupee bill for three months and 11.8 million beneficiaries
The Express Tribune reports that the government has prepared a 75 billion rupee fuel relief scheme and that the Petroleum Division has circulated a draft summary to the Economic Coordination Committee of the cabinet, seeking comments from key stakeholders before the scheme proceeds. Under the proposal an estimated 11.8 million people are covered: around 10 million two-wheeler users and 800,000 three-wheeler users, whose 20 litres a month translate into a maximum benefit of 2,000 rupees each, and another 1 million owners of cars up to 800 cc, whose 30 litres are worth up to 3,000 rupees a month. The government estimates the monthly fiscal cost at 24.6 billion rupees: 20 billion rupees for two-wheelers, 1.6 billion rupees for three-wheelers and 3 billion rupees for cars. The Petroleum Division has sought the 75 billion rupees through a technical supplementary grant to finance three months, and a further 1.73 billion rupees is proposed for the Information Technology Ministry to build and run the programme's technology.[3]
Petrol up 24 per cent since July as the Gulf crisis feeds through
The scheme comes amid a steep rise in domestic fuel prices. Between 1 July and 11 September petrol rose by 72 rupees a litre, or 24 per cent, and high-speed diesel by 87 rupees, or 28 per cent, after volatility in international oil markets during the Gulf crisis, The Express Tribune reports. The government noted that Pakistan's heavy dependence on imported crude and refined products passes international increases straight into retail prices. The daily pricing mechanism that replaced weekly price setting in July was itself a response to that volatility. Officials said lower-income consumers face severe pressure from the higher prices and the resulting inflation, and the prime minister directed the authorities to design relief for the poorest after consultations led by Deputy Prime Minister Ishaq Dar with the petroleum, finance and IT ministries, the State Bank of Pakistan and the regulator Ogra. Applicants register by sending their identity and vehicle details by text message to 9771 and receive an authorisation message before filling up.[2], [3]
