State Minister for Petroleum Musadik Malik has announced a massive Rs100 slash in petroleum prices for motorists owning vehicles with engine power less than 800cc.
In a presser held in Islamabad, the minister said that the affluent people will pay Rs100 extra for petroleum products while the poor will get the relief of the same amount.
The government will likely reveal the details of this implementation plan within the coming week.
Dr Malik said the relief package will be implemented within six weeks.
Apart from this, the government will also subsidize gas prices for the low-income groups.
Crossing IMF ‘hurdles’
On the other hand, in order to avoid any possible hurdles from the IMF’s side, the government has prepared an alternate plan.
Officials say Rs140 billion will be required to provide the monthly petrol subsidy of Rs50 per liter. This burden, the government has decided, will be placed on the rich instead of imposing new taxes.
Relief in the subsidized petrol package will be provided through the Benazir Income Support Program data.
Unregistered motorcycles and small vehicles will be registered first, for which an app will be developed.
The relief will be provided at petrol pumps of all companies.
The officials say instead of fuel cards, the customers will be given passwords to avail the relief.
The monthly fuel limit for motorcycles, rickshaws and vehicles will be determined in a few days, they added.
Relief package
On Sunday, Prime Minister Shehbaz Sharif said low income poor people will be given a subsidy of Rs50 per liter under petroleum relief package.
While chairing a review meeting on the relief package here, he said the petroleum relief will be given to low income consumers who have motorcycles, rickshaws, 800cc and other small cars.
He said the program of petroleum subsidy would be started soon and a comprehensive strategy would be formed with the cooperation of relevant departments for effective implementation of the subsidy program.
