Govt allocates Rs125b to shield fuel consumers

PM says timely decisions have ensured sufficient supplies

ISLAMABAD:

The federal government has allocated Rs125 billion through savings and development budget cuts to cushion consumers against rising global oil prices, as Prime Minister Shehbaz Sharif said public relief remained his main priority amid ongoing regional tensions and supply disruptions.

Chairing a review meeting on fuel conservation and austerity measures on Sunday, Shehbaz said timely decisions had ensured sufficient petroleum supplies to meet national requirements, adding that maximum possible relief had been extended to citizens over the past three weeks.

Officials informed the meeting that the government had so far spent Rs69 billion to offset a potential increase of Rs127 per litre in petrol and Rs252 per litre in high-speed diesel prices, shielding consumers from the full impact of surging oil prices in international markets.

In a recent address, the prime minister noted that petrol prices could have reached Rs544 per litre and diesel Rs790 per litre based on global rates, but the government was maintaining the prices at Rs322 and Rs335 respectively.

The participants of the meeting urged citizens to support conservation efforts by avoiding unnecessary travel and prioritising teleconferencing in workplaces, as part of broader measures to reduce fuel consumption and manage limited resources efficiently.

The prime minister directed provincial governments to facilitate motorcycle and rickshaw owners in registering their vehicles in their own names, aiming to digitise records nationwide and ensure eligibility for future relief programmes.

He also instructed authorities to strengthen coordination with chief secretaries of all provinces, as well as Azad Jammu Kashmir and Gilgit-Baltistan, to ensure uniform implementation of conservation and relief measures across the country.

Officials told the meeting that petroleum supply and demand, along with the entire distribution chain, were being closely monitored through a digital dashboard, while arrangements for petrol imports in April had already been finalised.

They said Pakistan had avoided long queues and supply disruptions seen in several other countries, attributing the stability to effective planning and timely policy decisions by the government.

A proposed fuel support programme for motorcycle riders and rickshaw drivers was also reviewed, featuring a dedicated mobile application to distribute subsidised petrol through a digital quota system for low-income users.

The government has also introduced austerity steps, including an additional weekly holiday, cuts in free petrol allocations for ministers, restrictions on protocol vehicles, and proposals to extend subsidised fuel to students.

Earlier, authorities raised petrol and diesel prices by Rs55 per litre, or 20%, citing the impact of the US-Israel and Iran conflict on global supply chains, which has pushed crude oil prices to a two-year high.

In a parallel move, the government increased the levy on high-octane fuel used by luxury vehicles by Rs200 per litre, taking the total levy to Rs300 and raising its price to Rs600 per litre.

(WITH INPUT FROM APP)