The Planning Commission met last week to explore the adoption of special motorcycle petroleum. This adoption would be accessible to low-income and middle-class riders.
For numerous years, officials have debated the introduction of specific motorbike petroleum. However, due to high petroleum prices the rupee faced downfall. The situation has become more serious and critical now.
Pakistan is known as an elite state. This is mirrored in the fuel supply chain, which is tailored toward higher-income vehicle owners. Motorbikes account for 40-50% of total petrol use which includes major lower-income people. While it is true that petrol markets across the world favor vehicles. Vehicles owners are the primary consumer category in most sophisticated nations. It is also necessary to consider the demands of motorbike riders in Pakistan.
Motorcycle riders are a major consumer group in Pakistan. While it is not advised that the petrol market disregard vehicles, it is critical to address the demands and finances of motorbike riders.
In the current situation, governments may need to interfere for the oil business that is not attentive to the needs of the fuel market.
The challenge of delivering economical motorcycle petrol includes both technical and economic dimensions. Experts say that motorcycle engines do not require high-octane fuel (greater than RON 90). Higher grades such as RON 92 and 95 are superfluous. Developing these better grades is more costly, particularly in Pakistan, where older factories lack catalytic reformers and must supply and add manganese-based additives, raising the price.
The demand for a lower quality, cheaper fuel with a lower RON value discovered, primarily for motorbikes. This sort of fuel not needed for automobiles, but it is a commodity that Pakistan’s low-tech refineries can manufacture.
Another justification for implementing this fuel is socioeconomic; offering incentives to low-income motorbike riders. Taxing both high-income vehicle drivers and low-income motorbike riders at a similar rate is unreasonable.
Another solution to the challenge of supplying inexpensive motorcycle fuel is to provide special low-octane petrol that is taxed at a lower rate than regular higher-octane petroleum. The International Monetary Fund (IMF) is likely to endorse this strategy, which has highlighted the need for targeted subsidies that aid the poor rather than giving lower taxation for everyone.
