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Pakistan

KP govt announces fuel subsidy for motorcyclists following price hike

  • Aslam says govt collected Rs822bn in petroleum levy during first seven months
Published Updated

In a major relief move following the federal government’s massive fuel price hike, Khyber Pakhtunkhwa Chief Minister Muhammad Sohail Afridi on Sunday announced a Rs2,200 subsidy for every registered motorcycle owner in the province.

The financial assistance aims to offset the impact of the recent Rs55 per litre increase, effectively providing the equivalent of approximately 40 litres of petrol to nearly 1.5 million registered bike owners.

The subsidy will be disbursed in two phases. An immediate payment of Rs1,100 will be transferred to eligible owners. The remaining Rs1,100 will be disbursed in a second installment later.

During a press conference alongside Finance Adviser to CM Muzammil Aslam, CM Afridi described the petrol price hike as an “economic bomb” on the public. The chief minister categorically rejected the Rs55 increase in petrol prices, calling it an “act of tyranny” against the masses.

“The provincial government is committed to shielding its citizens from global supply disruptions and rising inflation,” he added. In addition to the petrol subsidy, the chief minister confirmed that fares for the Peshawar BRT and other public transport will remain unchanged despite the increased operational costs.

CM Afridi remarked that parties currently in power used to label a Rs12 increase as a “petrol bomb,” yet they have now imposed a Rs55 burden.

He stated that following IMF reports revealing corruption worth Rs5,300 billion, placing further burdens on the public is unacceptable.

He criticised the Punjab government’s decision to purchase a Rs11 billion luxury aircraft, citing it as an example of misplaced priorities.

The chief minister highlighted that the KP government has taken practical steps to reduce expenditures. No increments have been made to provincial ministers’ salaries, and a ban remains on the purchase of new official vehicles.

A complete ban has been imposed on official foreign tours. Despite a helicopter crash during flood relief operations, the provincial government prioritised public relief over purchasing a new helicopter, he said.

Afridi said Khyber Pakhtunkhwa has taken a national lead in fuel management by establishing a Special Petrol Monitoring Dashboard. The dashboard provides real-time monitoring of supply and storage at petrol pumps to prevent artificial shortages.

While critical of pricing, the CM noted that consultation between federal finance and petroleum ministers with the provinces is a positive step. He confirmed that KP will provide written proposals to the centre to tackle potential fuel and diesel shortages if global conditions worsen.

On the occasion of International Women’s Day, Chief Minister Khyber Pakhtunkhwa Muhammad Sohail Afridi announced the launch of specialised “Pink Buses” within the BRT network for female commuters. He further revealed that a special relief package for farmers is being prepared for the upcoming wheat harvesting season.

The chief minister confirmed that 140 additional buses are being procured for the Peshawar BRT, with 52 units already manufactured and ready for deployment.

Aslam provided a breakdown of the taxation burden in petrol price, saying the levy has been hiked from Rs86 to Rs105.

“The government collected Rs822 billion in petroleum levy during the first seven months of the current fiscal year,” he said, adding that by the end of the year, the government is expected to collect a staggering Rs1,700 billion in levies.

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