ISLAMABAD: The federal government has set a petroleum levy collection target of Rs1.676 trillion for the current fiscal year, while more than 10 million motorcycle riders and small-vehicle users are receiving relief under the Prime Minister’s fuel subsidy scheme, Minister of State for Finance and Revenue Bilal Azhar Kayani told the Senate on Friday.
Responding to questions during the Senate’s Question Hour on October 23, Kayani said average monthly petroleum levy collections were estimated at approximately Rs125 billion, although actual receipts varied depending on the consumption and sale of petroleum products.
He explained that fluctuations in fuel demand directly affected monthly revenue collection, making petroleum sales a key factor in determining the government’s levy receipts.
The minister said the government was simultaneously pursuing its revenue targets and providing targeted financial assistance to consumers affected by higher fuel prices.
Rs500 weekly petrol relief for motorcycle riders
Providing details of the Prime Minister’s fuel subsidy programme, Kayani said motorcycle riders were being provided petrol relief worth Rs500 every week.
Owners of vehicles with engine capacities of 800cc or below were also eligible for a subsidy of Rs1,000 on 10 litres of petrol every 10 days.
He said the initiative was designed to provide direct relief to low-income and middle-income consumers who depend on motorcycles and smaller vehicles for daily transportation.
The programme also covers Qingqi rickshaw drivers, operators of loader vehicles and other eligible small-vehicle owners.
Kayani maintained that the subsidy was being implemented at petrol stations, with eligible consumers receiving assistance under the government’s announced arrangements.
Minister says subsidy scheme operational at petrol pumps
The minister told the Senate that he had personally visited 40 petrol pumps in his constituency to oversee the registration of consumers and facilitate the provision of subsidised fuel.
He cited these visits as evidence that the scheme was being implemented on the ground.
According to Kayani, the government was making efforts to ensure that eligible consumers could access the relief programme despite challenges arising from higher petroleum prices.
He said the subsidy was particularly important for people who relied on motorcycles, rickshaws and small commercial vehicles for their livelihoods.
Regional conflict adds pressure on fuel prices
Addressing concerns over petroleum prices, Kayani said the ongoing conflict in the region had increased pressure on fuel markets, affecting Pakistan as well as other countries.
He noted that the impact of regional instability on petroleum prices had created additional challenges for consumers and governments.
The minister said targeted fuel subsidies were among the measures being used to reduce the financial burden on vulnerable segments of the population.
He added that the government was working to ensure uninterrupted supplies of petrol and diesel across the country.
Kayani reaffirmed that maintaining the availability of petroleum products remained a priority, particularly amid uncertainty in regional energy markets.
The government would continue efforts to prevent supply disruptions while providing relief to eligible consumers through the Prime Minister’s fuel subsidy programme, he said.