The government has unveiled a strategy for the newly announced petrol relief program, which would be executed in three phases to provide a relief of up to Rs50 per liter.
Before the program’s launch, the government had increased the price of all petroleum products by up to Rs13 per liter for the next two weeks, except light diesel oil, whose price increase was insignificant.
The administration claimed to have implemented a two-tier pricing system in a paper outlining the price approach underlying the Prime Minister’s Petroleum Relief Programme. By identifying consumers as “poor” or “rich,” this initiative would assist motorcycles, rickshaws, and small cars.
The campaign will primarily target Pakistan’s roughly 20 million motorcycles, rickshaws, and compact cars at 800 CC and below.
The government has estimated the number of active automobiles using survey data and car sales information. Then, using differential pricing, by charging the “rich” an additional Rs102 per liter, the “poor” will receive up to Rs50 in relief, assuming the base price of fuel is Rs300 per liter.
Consequently, the anticipated pricing would be Rs. 250 for the “poor” and Rs352 for the “rich.”
The strategy indicates that the scheme will be implemented using either an “e-discount through OTP,” a “fuel card,” or both models.
First, the base fuel price (Rs 300) will be increased by Rs 75, resulting in a new, unrelieved price of Rs 375, and cash will be deposited into an escrow account.
The government will enroll beneficiaries in the second phase using “two distinct registration mechanisms.”
The National Database and Registration Authority (NADRA) would receive data uploads from the Vehicle Registration Authority in one method, while customers would register their vehicles by SMS in the other.
In the final phase, the discount will be provided to the recipient after registration on the relevant registration portal and completing a transaction at the gas station.
The Petroleum Division of the Ministry of Energy, which includes Nadra, the Oil Ministry, will manage the duties and responsibilities of the plan’s many players.
The low-income segments, including owners of motorcycles, rickshaws, 800cc cars, and other small vehicles, will receive a Rs 50 per liter subsidy under the petroleum relief package, according to Prime Minister Shehbaz Sharif, who announced while chairing the March 19 meeting.
The approach revealed today respects the prime minister’s announcement of a “relief of up to Rs50 per liter,” even though State Minister for Petroleum Dr. Musadik Malik indicated a day later that the government will provide gasoline at “Rs100 below the official rate.”
Notably, the International Monetary Fund (IMF), which has mandated reforms and actions on Pakistan to restart a stalled $6.15 billion IMF loan program, has not yet been contacted on the government’s latest action.
According to Esther Perez Ruiz, resident representative for Pakistan at the IMF, IMF personnel are “seeking additional information on the plan.”
