Govt estimates monthly cost of fuel relief scheme at Rs25-30bn, says petroleum minister

Tarar says prime minister has directed authorities to prevent public transport fare increases

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Federal ministers Attaullah Tarar, Shaza Fatima Khawaja and Ali Pervez Malik hold a press conference to brief the media on the Prime Ministers fuel relief scheme
Federal ministers Attaullah Tarar, Shaza Fatima Khawaja and Ali Pervez Malik hold a press conference to brief the media on the Prime Minister's fuel relief scheme
  • Scheme could cost Rs300bn over 10 months: minister.
  • Rs100-per-litre petrol relief targets eligible motorists.
  • IT minister outlines registration process for fuel relief.

Petroleum Minister Ali Pervaiz Malik on Monday estimated that the government's fuel relief scheme would cost Rs25 billion to Rs30 billion per month.

He made the remarks at a press conference alongside federal ministers Attaullah Tarar and Shaza Fatima Khawaja, where the government briefed the media on the scheme's eligibility criteria, registration mechanism and implementation.

Malik said the scheme could cost around Rs300 billion if it continued for 10 months, adding that Prime Minister Shehbaz Sharif had directed the government to mobilise additional resources for the programme.

PM Shehbaz Sharif launched the scheme on Sunday, announcing a Rs100-per-litre discount on petrol for motorcyclists, rickshaw and Qingqi drivers and users of vehicles with engine capacities of up to 800cc.

Under the scheme, two-wheelers, rickshaws and other two- and three-wheelers will receive relief on up to 20 litres of petrol per month, while vehicles up to 800cc will be eligible for a discount on up to 30 litres.

The relief will be rolled out in Islamabad from the intervening night of Monday and Tuesday and across the rest of Pakistan, including Azad Jammu and Kashmir and Gilgit-Baltistan, from the intervening night of Wednesday and Thursday.

Registration mechanism

Federal Minister for IT Shaza said the programme was divided into two parts, with eligible citizens first required to register before availing the fuel relief.

Applicants must send their CNIC number from a SIM registered against their identity card to 9771, followed by their vehicle registration number, province or city and registration date.

The province entered must be the one where the vehicle or motorcycle is registered, Shaza said, adding that applicants would receive a message if any required information was missing.

She said the registration process only needed to be completed once. After registering, beneficiaries could obtain the fuel token by sending "TOK" to 9771 when purchasing petrol.

Shaza urged citizens not to share their CNIC numbers or any other personal data with anyone, saying the government would neither ask citizens for additional data nor charge any fee for the scheme.

The IT minister said any errors in the process would be identified and rectified as the programme progressed.

Tarar on fares, austerity

Information Minister Tarar said the scheme had been launched specifically for deserving people following the sharp increase in fuel prices.

Tarar said a transparent process had been adopted and that the prime minister had issued instructions to all relevant ministries for its implementation.

He said all ministries and departments would remain available around the clock to facilitate the programme.

Tarar added that the prime minister had directed that public transport fares should not be increased after the fuel relief was provided.

He said the government was taking several austerity measures, adding that some existing measures had been retained while others were under review.

Scheme cost, diesel prices

Malik said the prime minister would never want to place an additional burden on any citizen.

He said Pakistan imported around 90% of its energy requirements, leaving the country exposed to fluctuations in international fuel prices.

The government and prime minister had previously arranged resources in advance for subsidies, he said, adding that Shehbaz had again directed officials to mobilise additional resources.

Malik said a targeted relief package had also been arranged previously and remained in place until June 30.

He said diesel had been priced between Rs270 and Rs280 per litre before the war, adding that its price in Pakistan had still not doubled.

The minister said most public transport operated on diesel, underscoring the need to prevent fare increases.

He added that Deputy Prime Minister and Foreign Minister Senator Ishaq Dar had been tasked with consulting the provinces on the matter.