Government’s decision to further relax the Prime Minister’s Fuel Relief Scheme is welcome, particularly at a time when tensions in the Middle East have pushed global oil prices higher and placed an additional burden on consumers. The abolition of 5-litre limit per token is a positive step, allowing eligible motorcycle, Qingqi and rickshaw users to purchase fuel according to their actual requirements. The extension of eligibility to older two- and three-wheelers and removal of SMS charges should also make the scheme more accessible.
Protecting weaker sections of society during such difficult times is essential. For millions who depend on motorcycles, rickshaws and Qingqis for commuting and earning their livelihoods, rising fuel prices can quickly become a question of household survival yet impact of expensive fuel is no longer confined to the poorest. Petrol prices have risen to levels that are also putting considerable pressure on lower-middle and middle-income families. For many people running 1,000cc or 1,300cc cars, even basic commuting and refuelling have become increasingly difficult. Government should therefore consider extending some form of targeted relief to at least 1,000cc vehicles.
There is also another important area that needs attention. Transport carrying essential commodities depend heavily on diesel. When its price rises, the cost is eventually passed on to consumers through higher prices of everyday goods. Targeted relief for commercial transport could therefore help contain the inflationary impact of fuel costs and prevent further pressure on household budgets. At the same time, austerity measures must be implemented in true spirit and backed by effective monitoring as this can create greater fiscal space for providing relief to general public. Government’s relief efforts should be broad enough to reflect the realities faced by different sections of society.
