ISLAMABAD, Apr 07 (APP):The Senate was apprised on Tuesday that petroleum prices in Pakistan were linked to the global market and that the government was providing targeted relief to motorcycle and rickshaw users through a subsidy mechanism. Responding to a point raised by Maulana Attaur Rehman, Minister for Law and Justice Azam Nazeer Tarar said crude oil prices in the international market had risen sharply after February 28, while freight …
Oil prices linked to global market, targeted relief being provided to bikers: Senate told
ISLAMABAD, Apr 07 (APP):The Senate was apprised on Tuesday that petroleum prices in Pakistan were linked to the global market and that the government was providing targeted relief to motorcycle and rickshaw users through a subsidy mechanism.
Responding to a point raised by Maulana Attaur Rehman, Minister for Law and Justice Azam Nazeer Tarar said crude oil prices in the international market had risen sharply after February 28, while freight premiums had also increased significantly, affecting import costs.
He said crude oil, which was around 67 dollars per barrel before the recent escalation, had since witnessed a sharp rise, while the premium charged by companies had jumped from around 5 to 7 dollars to as high as 50 dollars per barrel.
The minister said oil prices in Pakistan could not be determined arbitrarily, as petroleum products were procured at prevailing international market rates along with freight and other charges.
He said that despite regional tensions, Pakistan had managed to ensure an uninterrupted supply of petroleum products, unlike some countries where long queues were seen outside filling stations.
Azam Nazeer Tarar said the government had engaged with the International Monetary Fund and adjusted the petroleum levy to provide some relief, shifting the burden in a way that helped reduce the price of diesel.
He said diesel prices remained historically high in the international market due to greater demand for refined diesel compared to petrol.
The minister said that the prime minister had also directed provision of a targeted subsidy of Rs100 per litre for motorcycle riders and three-wheeler users, limited to 20 litres per month, which would be transferred through digital wallets.
He said the government had also adopted austerity measures in view of the prevailing regional situation, including a 50 percent cut in fuel and transport expenses of the federal government.
He said that cabinet members had surrendered their official vehicles and had also volunteered to forgo six months’ salaries on the direction of the prime minister.
Azam Nazeer Tarar said the government expected all segments of society to support national conservation efforts, including measures aimed at reducing fuel consumption and closing markets earlier.
He said difficult regional conditions required collective responsibility and urged all stakeholders to support steps taken in the larger national interest.
