The Finance Ministry has rejected a proposal to use emergency funds to reduce the petroleum levy.
ISLAMABAD, (UrduPoint / Pakistan Point News – 13th Sep, 2026) Following a sharp increase in petroleum product prices, the government has apparently approved a monthly compensation of approximately Rs2,000 for motorcyclists as a measure to provide relief.
According to an Express Tribune report, the relief scheme will initially remain in effect for 3 months, with any extension conditional on the situation in the middle East.
However, at current high prices, the Rs2,000 monthly relief amounts to only 5 litres of petrol.
Users of public transport and small cars have been excluded from the relief, meaning it will not reduce inflationary pressure.
It has been reported that the government is currently collecting a tax of Rs106, or 28 percent, on petrol and Rs101, or 25 percent, on diesel.
While the public is facing difficulties, the government’s apparent inflexibility has also produced unusual figures. The Petroleum Ministry had proposed covering the shortfall through a levy and Rs430 billion in emergency funds, but the Finance Ministry rejected the proposal, citing the IMF.
It was learnt that, of the Rs389 billion in emergency funds allocated during the last fiscal year, Rs276 billion was spent and Rs113 billion remained.
An additional Rs100 billion was collected under the petroleum levy, leaving a total of Rs213 billion that could have been used for relief. However, priority was allegedly given to further burdening the public. The announcement of the Rs2,000 relief before Jamaat-e-Islami’s expected long march on September 20 is being described as an attempt to reduce political pressure.
