Pakistan mulls launching of special fuel for low income group
Shares
During last week’s meeting of the Planning Commission, the topic of discussion was the introduction of a special fuel for motorcycles that would be affordable for low-income and lower-middle-class users.
The issue of introducing a special fuel for motorcycles has been under consideration by policymakers for several years. However, with the recent increase in petrol prices due to the depreciation of the rupee, the issue has become even more urgent and important.
Pakistan is often viewed as an elitist state, and this is reflected in the petrol supply chain, which is geared towards higher-income car owners even though motorcycles account for 40-50% of overall petrol consumption. While it is true that petrol markets worldwide tend to prioritize cars, as they are the major consumer category in most advanced countries, it is important to consider the needs of motorcycle users in Pakistan as well.
In developing countries like Pakistan, motorcycle riders are a major consumer category. While it is not suggested that the petrol market should ignore cars, it is important to consider the needs and budgets of motorcycle users as well.
If the oil industry is not responsive to the needs of half of the petrol market, politicians may need to intervene in order to address the situation in the current climate of intense political competition.
