ISLAMABAD, Sep 14 (APP):Federal Minister for Petroleum Ali Pervaiz Malik said on Monday that the government would provide around Rs25 billion per month under the Prime Minister’s special petrol relief scheme. Addressing a press conference along with Federal Minister for Information and Broadcasting Attaullah Tarar and Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja, he said despite limited resources, the government was making efforts to protect vulnerable segments …
Govt. to provide Rs25bn monthly under PM’s petrol relief scheme: Ali Pervaiz
ISLAMABAD, Sep 14 (APP):Federal Minister for Petroleum Ali Pervaiz Malik said on Monday that the government would provide around Rs25 billion per month under the Prime Minister’s special petrol relief scheme.
Addressing a press conference along with Federal Minister for Information and Broadcasting Attaullah Tarar and Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja, he said despite limited resources, the government was making efforts to protect vulnerable segments of society.
“The Prime Minister wants this support to continue for the weakest segments of society until a solution to the situation is found,” he said.
The minister said it was difficult to give an exact figure for the number of beneficiaries at this stage as the country had around two crore motorcycles, while the number would vary depending on registration periods and eligibility criteria.
He said the Information Technology Minister had addressed problems encountered during the previous scheme and introduced improvements to the system.
Ali Pervaiz Malik said around 1.5 million motorcycles had benefited from the previous scheme, while the current initiative would also cover two-wheelers and three-wheelers.
He said the government expected the scheme to require around Rs25 billion per month, adding that the federal government and the finance minister had assured provision of the required resources.
To a question, he said diesel was currently available in Pakistan at around Rs400 to Rs405 per litre, depending on the location and fuel station, despite significantly higher prices in international markets.
The minister said the government had created room for relief through engagement with local refineries and efforts to revise the pricing mechanism.
He said Prime Minister Shehbaz Sharif had intervened and directed the government to engage with refineries to develop a pricing formula based on crude oil instead of relying entirely on refined-product prices.
“Because of that intervention, there is a reduction in diesel prices today,” he said.
Pervaiz Malik said diesel played a critical role in the national economy, particularly in transportation and agriculture.
To another question, the minister said the government had made all components of petroleum pricing publicly available to ensure complete transparency in the fuel pricing mechanism.
He said the level of petroleum levy had already been explained. At the same time, every component of the fuel price had been made available on the Oil and Gas Regulatory Authority (OGRA) website.
Ali Pervaiz Malik said the government had made complete details public at the direction of Prime Minister Shehbaz Sharif to ensure transparency in petroleum pricing.
“Every component has been placed before the public with complete transparency so that you can monitor it,” he said.
The minister said the availability of detailed pricing data would help dispel the perception that fuel prices were deliberately reduced slowly when international prices declined and increased rapidly when global prices rose.
He said all relevant data had been made available online and could be examined through the information provided on the OGRA website.
The minister said the government was committed to maintaining transparency in the petroleum pricing mechanism and ensuring that the public could independently examine the basis of fuel prices.
He said Pakistan required around 500,000 barrels of petroleum products per day and still had to import refined products to meet domestic demand.
The minister said prices of imported petroleum products were determined in dollars and were also linked to relevant concession agreements and international pricing mechanisms.
He said the government’s broader policy was to gradually withdraw from areas where the private sector could operate more efficiently.
“If you want to move in that direction, you should not increase restrictions. You have to remove barriers so that investment can come from abroad and bring new technology to improve efficiency and productivity,” he said.
Ali Pervaiz Malik said the government was proceeding cautiously towards its ultimate objective, keeping in view the need to protect consumers and maintain stability in the petroleum market.
He said the government was taking every possible step to provide relief to consumers.
To a question, he said, “If diesel prices have doubled in international markets while they have not doubled in Pakistan, then some room must have been created somewhere,” he said.
The minister assured consumers that the government would continue making every possible effort to provide relief within available resources.
To another question, he said refineries in Pakistan that had previously operated at around 50 per cent capacity were now operating at much higher levels.
“Today, PARCO is operating at 100 per cent utilisation, while PSO’s refinery is operating at around 70 per cent,” he said.
Ali Pervaiz Malik said ensuring crude oil supplies had helped local refineries increase utilisation and make diesel available to consumers in Pakistan.
