Govt allocates Rs125b to shield public from rising oil prices

The federal government on Sunday allocated Rs125 billion from various savings and development budgets to prevent increases in oil prices to shield the public from direct impacts from the ongoing war, according to a statement released by the Prime Minister's Office.

In a review meeting chaired by Prime Minister Shehbaz Sharif, the federal government assessed the implementation of measures aimed at fuel conservation and resource efficiency in light of the current regional situation.

The meeting was attended via video link by Deputy Prime Minister and Foreign Minister Muhammad Ishaq Dar, federal ministers Ahad Khan Cheema, Muhammad Aurangzeb, Ali Pervaiz Malik, Ataullah Tarar, Dr Musadiq Malik, Ahsan Iqbal, Shaza Fatima Khawaja, Owais Khan Laghari, Special Assistant Tariq Bajwa, State Bank Governor Jameel Ahmad, and senior government officials.

"The prime minister stated that, thanks to government decisions, sufficient petroleum products are available to meet the country’s essential requirements," the statement said. PM Shehbaz emphasised that public relief has been the top priority, with maximum support provided over the past three weeks.

On Friday, the premier, in an address to the nation, said that based on prevailing prices in the international market, petrol should have been priced at Rs544 per litre in Pakistan, but was being provided to consumers at Rs322 per litre. Similarly, he said the price of diesel should have been Rs790 per litre, but the government was supplying it at Rs335 per litre to shield the public from additional burden.

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He said the government had so far spent Rs69 billion to prevent an increase of Rs127 per litre in petrol prices and Rs252 per litre in high-speed diesel.

According to the press release, participants in today's meeting urged citizens to support the government’s conservation campaign, avoid unnecessary travel, and prioritise teleconferencing in offices and workplaces.

The prime minister instructed provincial governments to facilitate motorcycle and rickshaw owners in registering their vehicles in their own names. This measure will digitise the countrywide database of motorcycles and rickshaws, ensuring owners can benefit from future government relief initiatives, the statement said.

PM Shehbaz also directed relevant authorities to maintain close coordination with the chief secretaries of all four provinces, as well as Azad Kashmir and Gilgit-Baltistan.

Officials updated the meeting on the progress of conservation and savings measures, noting that the supply and demand of petroleum products, as well as the entire supply chain, are being regularly monitored via a newly developed digital dashboard.

"Arrangements for petrol imports in April have also been completed," the statement confirmed.

According to the briefing, unlike many other countries, Pakistan has not faced long queues or mismanagement in fuel supply, reflecting the government’s effective planning.

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"A proposed fuel support programme for motorcycle and rickshaw operators was also discussed, including a dedicated mobile application to facilitate implementation," the press release concluded.

The government on Saturday decided to introduce a mobile application-based system to provide fuel subsidies to low-income consumers as it seeks to manage the ongoing energy crisis and conserve supplies. Under the proposed mechanism, subsidised petrol distribution will be handled through a digital platform, allowing eligible users to obtain fuel through verified quotas.

Earlier this month, the government sharply increased diesel and petrol prices by Rs55 per litre, or 20 per cent, citing the ongoing US-Israel and Iran conflict, which has disrupted global supply chains and pushed crude oil prices to a two-year high.

In response to the crisis, both federal and provincial governments have introduced a series of austerity measures. These include an additional weekly holiday, a reduction in free petrol allocations for ministers, curbs on protocol vehicles, and proposals to provide subsidised fuel for students.

Last week, the government also approved a significant increase of Rs200 per litre in the fuel levy on high-octane fuel used in luxury vehicles, raising the total levy to Rs300 per litre and the price to Rs600 per litre.