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March 28, 2024
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EditorialWill petrol for the poor facility backfire?

Will petrol for the poor facility backfire?

Whether the government’s latest decision to grant subsidised fuel to the poor should be welcomed or not depends on what results it yields in the coming days, but at the moment, it seems to be a complicated process. In a press conference, State Minister for Petroleum Dr Musadik announced that the government would give petrol at Rs100 less than the official rate for motorbikes and cars up to 800cc, whereas those having vehicles above 800cc would have to pay Rs100 more for the fuel.

Earlier, the government had announced Rs50 subsidy per litre petrol for the less privileged.

To this, the minister said that initially it was decided that petrol would be sold at Rs50 less than the Ogra-notified rate to people having motorcycles and vehicles up to 800cc but Prime Minister Shehbaz Sharif directed that petrol should be given at Rs100 less than the notified rate. The government aims to help a majority of the poor people, which the minister estimates to be 210 million out of a population of 220 million. In the words of the minister, the government has separated the “Pakistan of the poor” from the Pakistan of the rich”.

PM Sharif has given 45 days to enforce the decision. Elaborating on the data, the minister said the government was collecting data of people through registered motorcycles and cars, computerised national identity cards and mobile phones. He said earlier, it had been planned that discounted fuel cards would be issued to people, but it was not feasible. The minister said people having smart or ordinary phones would receive a text message through which they could register and get the code mandatory to get petrol at fuel pumps. The monthly quota for those having bikes has been fixed at 21 litres while those having vehicles would get their tanks filled with discounted petrol once.

Besides, the minister said the government was already charging separate gas bills from the poor compared to the rich. He said similarly the government had introduced “target subsidy” on electricity, adding that the next scheme for the poor was also being worked out.

“Those using electri­city up to 400 units are rec­eiving cheaper bills,” he said.

The government is trying to pass on some benefit to the common man, but its hands are tied. It is election season – whether they will be held is another issue. With inflation at record peak, purchasing power of a common man is getting limited. This petrol pricing issue is complicated. People can still misuse this facility no matter how strict the check is imposed. Every other household has a motorcycle and people can easily shift it into cars.

Let’s wait and see what the outcome is.

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