Rs 50 Petrol Subsidy in Pakistan 2023

Federal Government announced Rs 50 Petrol Subsidy in Pakistan 2023 Today on 19th March. In response to Prime Minister Shehbaz Sharif’s directives, the government is currently working on a plan to provide relief to low-income individuals who own motorbikes but struggle to afford the high cost of fuel. The plan involves implementing a cross-subsidy scheme that will cost Rs120 billion.

The government intends to finance this subsidy by imposing an additional Rs50 charge on each litre of petrol purchased by wealthy car owners. However, the plan has encountered some obstacles.

According to sources, PM Shehbaz has entrusted Minister of State for Petroleum Musadik Malik with the responsibility of creating a mechanism for providing subsidised petrol to impoverished motorcyclists. At a recent cabinet meeting, the prime minister asked for more information from the state minister. The latter responded that several meetings had taken place, and a cross-subsidy mechanism had been developed.

During these meetings, it was revealed that a total of Rs120 billion would be necessary to provide affordable petrol to motorcyclists. The funds for this scheme would come from people who own expensive cars.

Eligibility Criteria for Petrol Subsidy in Pakistan 2023

The Following Vehicles are Eligible for Govt Fuel Subsidy 2023:

  • Bikes
  • Rikshaw
  • Cars Under 800 CC

Who are the eligible consumers for the petrol subsidy?

The petrol subsidy scheme is designed to benefit low-income and middle-class consumers who use petrol for their personal vehicles, motorcycles, or generators. The scheme will prioritize the following categories of consumers:

  • Registered taxpayers who earn less than Rs 100,000 per month
  • Unregistered taxpayers who earn less than Rs 60,000 per month
  • Farmers who own less than 12.5 acres of land
  • Small business owners who have less than 10 employees and a turnover of less than Rs 10 million per year

Also Read: Govt Flour Subsidy For Ramadan 2023

CategoryIncome limitDocuments required
Registered taxpayersRs 100,000 per monthNational identity card, tax registration number, and tax return
Unregistered taxpayersRs 60,000 per monthNational identity card, proof of income, and self-declaration form
FarmersLess than 12.5 acres of landNational identity card, land ownership certificate, and agriculture passbook
Small business ownersLess than 10 employees and Rs 10 million turnover per yearNational identity card, business registration certificate, and financial statement
Chart for Petrol Subsidy in Pakistan 2023

To qualify for the subsidy, consumers will need to provide their national identity card, tax registration number, and other relevant documents to the fuel retailers. The subsidy will be given on a first-come, first-served basis, subject to availability and verification.

What are the benefits and challenges of the petrol subsidy scheme?

The petrol subsidy scheme has several potential benefits for consumers, the government, and the economy. Some of these benefits include:

  • Reduced cost of living for eligible consumers, who will save up to Rs 6,000 per month on petrol expenses
  • Increased purchasing power and disposable income for eligible consumers, who may spend the saved money on other goods and services, thus stimulating demand and growth
  • Increased compliance and tax revenue for the government, as more consumers may register for taxes and contribute to the formal economy
  • Reduced smuggling and adulteration of petrol, as the subsidized petrol will be sold only to eligible consumers who can be identified and monitored
  • Increased social and political stability, as the subsidy may help to alleviate some of the grievances and protests by the affected consumers, who often face inflation, unemployment, and poverty


The Rs 50 petrol subsidy scheme in Pakistan is a bold and ambitious measure by the government to address the persistent problem of petrol affordability for low-income and middle-class consumers.

While the scheme has some potential benefits and challenges, its success will depend on the effective implementation and monitoring by the government, the cooperation and transparency of the fuel retailers and other stakeholders, and the support and feedback of the eligible consumers and the wider public.

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