Prices for oil: a Rs 300 billion subsidy is on the way

Sources at the Ministry of Finance stated on Saturday that the government had asked the provinces for financial help to give the public a targeted subsidy of up to Rs 300 billion.

In light of escalating oil costs, the federal government has asked the provinces to set up Rs 154 billion for the subsidy program.

According to sources in the ministry, the government plans to give targeted subsidies to make fuel cheaper for two- and three-wheelers in the country.

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

Sources said that “the second option is to give motorbikes 20 liters of fuel and rickshaws 30 liters of fuel at a lower price.”

According to officials in the ministry, the proposed targeted subsidy system will need Rs 300 billion for six weeks.

Sources said that a meeting of the President, Prime Minister, and Chief Ministers of the provinces is anticipated to happen next week to make a final decision on the issue.

The federal government has made a final plan to give low-income people help with gas costs, focusing on motorcyclists and rickshaw drivers. This is in reaction to the ongoing energy crisis caused by tensions across regions.

The Ministry of Information Technology has built a unique mobile app to make sure that subsidized fuel is distributed fairly, as the government told them to do.