Pakistan mulls launching of special fuel for low income group

Pakistan mulls launching of special fuel for low income group

During last week’s meeting of the Planning Commission, the topic ofdiscussion was the introduction of a special fuel for motorcycles thatwould be affordable for low-income and lower-middle-class users.

The issue of introducing a special fuel for motorcycles has been underconsideration by policymakers for several years. However, with the recentincrease in petrol prices due to the depreciation of the rupee, the issuehas become even more urgent and important.

Pakistan is often viewed as an elitist state, and this is reflected in thepetrol supply chain, which is geared towards higher-income car owners eventhough motorcycles account for 40-50% of overall petrol consumption. Whileit is true that petrol markets worldwide tend to prioritize cars, as theyare the major consumer category in most advanced countries, it is importantto consider the needs of motorcycle users in Pakistan as well.

In developing countries like Pakistan, motorcycle riders are a majorconsumer category. While it is not suggested that the petrol market shouldignore cars, it is important to consider the needs and budgets ofmotorcycle users as well.

If the oil industry is not responsive to the needs of half of the petrolmarket, politicians may need to intervene in order to address the situationin the current climate of intense political competition.