The announcement of the program comes just days after the government raised prices for all petroleum products.
In a report detailing the pricing strategy behind the prime minister’s oil bailout program,the government announced his two-tiered pricing that splits bailouts into two-wheelers (motorcycles), three-wheelers (rickshaws) and small cars. The report mentioned that it developed a configuration program,Categorize consumers into ‘poor’ and ‘rich’.
The program covers about 20 million motorcycles and rickshaws (with 21-liter fuel caps) currently in operation across Pakistan and 1.36 million small vehicles (with 30-liter fuel caps),the report said.
Assuming a base price of 300 rupees per liter of fuel, using differential pricing, the ‘poor’ man can afford the ‘rich’ by charging him a surcharge of 102 rupees per liter up to 50 A reduction of Rs is given. The resulting expected price is 250 rupees for the “poor” and 352 rupees for the “rich”. The report states that the program will use two of its models in its implementation; OTP and “fuel cards”.
