Karachi: Progress has been made on providing subsidy on petroleum products to low-income groups.
The federal government will announce the final mechanism in the coming days after consultation with the provinces.
According to sources in the Ministry of Petroleum, motorcycle and rickshaw owners will be given a subsidy of up to 20 litres per month, under which low-income individuals will receive approximately Rs2,000 in monthly relief.
The sources said that a data registration app has been developed for oil companies. Users will be issued a mobile verification number.
After entering their CNIC number and vehicle registration number, they will receive a verification code, which can be shown at petrol pumps to get subsidised fuel.
It will be mandatory for the motorcycle to be registered in the owner’s name to avail this facility.
On the other hand, the Sindh government has proposed transferring the subsidy directly into the accounts of Benazir Income Support Programme beneficiaries instead of using a mobile app.
Sources further stated that consultations with provincial governments are ongoing regarding subsidy on railway fares.
A proposal to share subsidy with provinces according to the volume of transport is also under consideration.
Initial estimates suggest that more than Rs200 billion will be required for diesel transport subsidy.
