Fuel subsidy for poor on the cards as govt gears up to tax the rich

Minister of State for Petroleum, Musadik Masood Malik on Monday announced the government’s plans to increase petrol prices by Rs100 for the affluent in order to provide relief to low-income consumers.

The aim is to make petrol more affordable for the poor by using the extra revenue collected from the rich to subsidise their fuel costs.

Reportedly, Prime Minister Shehbaz Sharif on Sunday announced a relief package for low-income consumers, which includes a subsidy of Rs50 for every liter of petrol.

However, Malik stated that the PM has ordered the ministry to increase the subsidy to Rs100.

The petrol subsidy programme will be implemented in the next six weeks, and the financing for the scheme will be accommodated through the tax rate that the higher-income segment pays. Malik added that this policy reflects the government’s efforts to make the affluent pay a fair share for the commodities, and to support low-income families struggling to make ends meet.

Recently, the government raised the prices of all petroleum products except light diesel oil, citing an increase in Platts Singapore prices and the depreciation of the rupee.

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