Govt Provides Rs27 Billion Relief Under PM Fuel Scheme: Tarar

ISLAMABAD – (Mudassir Iqbal) – More than 15 million people have benefited from the Prime Minister’s Fuel Relief Scheme, with Rs27 billion disbursed to provide subsidised petroleum products to eligible consumers, while local oil refineries are bearing an additional burden of around Rs15 billion per month to prevent a Rs15 per litre increase in petrol prices, Federal Ministers Attaullah Tarar and Ali Pervaiz Malik said on Monday.

Addressing a joint press conference, Minister for Information and Broadcasting Attaullah Tarar said the government, on the directives of Prime Minister Shehbaz Sharif, had prevented the expected increase of Rs15 per litre in petrol prices by shifting the additional burden to oil refineries instead of passing it on to consumers.

He said the prime minister’s priority was to minimise the financial burden on the public, adding that the refineries had agreed to support the government and consumers during the challenging international situation.

Tarar said the Fuel Relief Scheme was providing subsidised petrol to motorcycles, Qingqi rickshaws and vehicles with engine capacity of up to 800cc. More than 15 million registrations had been completed, while approximately Rs27 billion had so far been disbursed under the initiative.

He said payments were also being made to petrol pumps for fuel supplied at subsidised rates. The scheme had been launched through coordinated efforts of the Ministry of Information Technology, Ministry of Petroleum, Oil and Gas Regulatory Authority (OGRA) and State Bank of Pakistan.

The minister said international developments, particularly the situation around the Strait of Hormuz and Bab el-Mandeb, had put pressure on global economies and energy markets. However, the government had clear instructions not to transfer the impact of these developments to the public.

He added that Pakistan had sufficient stocks of essential commodities and that cargo arrivals and supply chains were being maintained to meet national requirements. He urged the public to avoid speculation and unverified reports.

Speaking on the petroleum situation, Minister for Petroleum Ali Pervaiz Malik said local refineries would bear an additional burden of approximately Rs15 billion per month, enabling petrol to be sold Rs15 per litre below the international market price.

He said petrol prices were expected to rise by Rs15 per litre on Friday, but local refineries had supported the government’s intervention to maintain the existing price.

The minister explained that domestic refineries met around 30 per cent of the country’s petrol requirements, while the remaining 70 per cent was imported at international market prices.

He said import premiums had increased significantly, rising from around $20 per barrel before October 31 to more than $30 per barrel in subsequent tenders, reflecting pressure in the international oil market.

Ali Pervaiz Malik said Prime Minister Shehbaz Sharif had held consultations with local refineries to explore ways to provide fuel to consumers at the lowest possible price. He thanked the refineries for increasing production and extending support during the difficult period.

He said the petrol crack margin for refineries had increased from around $5 per barrel before the crisis to approximately $20 per barrel, adding that the government had requested the refineries to share the burden with consumers.

The petroleum minister said the current intervention was temporary, while deregulation remained the government’s long-term objective. He added that, under the approved summary, the government could return to the deregulation framework within 30 days.

He said the government was also working to increase domestic refinery production and move forward with the long-awaited refinery upgrade policy.

Responding to questions about gas availability, Ali Pervaiz Malik said arrangements had been made to ensure adequate gas supplies during November, including availability at all three daily cooking times. The government was also working on supply arrangements for December and January to meet consumers’ needs during the winter season.

On LPG prices, he said the reported price range of Rs600 to Rs700 was incorrect and that the government would announce relevant measures within a day or two.