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ISLAMABAD: The government will finance the fuel subsidy (discounted fuel) by charging Rs100 per litre more from the affluent, said Minister of State for Energy (Petroleum Division) Musadik Masood Malik Wednesday.

In a media briefing on a strategy for Prime Minister’s Petroleum Relief Program for the low-income population, the state minister said the government will make petrol expensive for the rich and cheaper for the poor. The higher prices paid by the rich will be used to provide petroleum subsidy to low-income people, therefore, the IMF should not have any objection, he maintained.

Around 51 percent of the population would be beneficiaries of the discounting fuel pricing program who consume 60 percent of total fuel consumption in the country. The program will target roughly 20 million motorcycles and rickshaws (with capping of 21 liters of petrol) and 1.36 million small vehicles (capping of 30 litres of fuel), he said.

'PM wants difference between fuel prices paid by rich and poor to be Rs100'

He further said that the strategy of Rs100 per litre discounting petrol pricing for motorcycles, rickshaws and up to 800 cc cars will be finalised in six-week and submit to Prime Minister Shehbaz Sharif for approval.

State Minister for Energy (Petroleum Division) Musadik Malik said the proposed two-tier pricing strategy would aim at taxing Rs100 per litre tax to luxury car owners. The government intends to fund this subsidy by charging an additional fee of Rs100 for every liter of petrol bought by wealthy car owners.

This is purely a Petroleum Division initiative and other line ministries and divisions were not involved due to a limited time frame to finalise recommendations on the PM fuel relief package. “We have foreseen no court cases in two-tier tariff by rich,” he added.

He further said that the Oil and Gas Regulatory Authority (OGRA) would review fuel pricing fortnightly and additional fuel price charged from rich would be deposited by the Oil Marketing Companies (OMCs) in a dedicated escrow accounts in National Bank. The collection would be audited.

He further said that the beneficiaries’ data would be collected from provincial vehicles registration authorities. Then a message (OPT) would be sent to their phone numbers and 12,000 outlets of OMCs would be facilitated through scanners. Each motorcyclist would be eligible to get two to three litres petrol each day and 5 litres to car owner each day.

Copyright Business Recorder, 2023


Comments are closed.

Haq Mar 23, 2023 10:47am
Crude oil price is falling (due to economic & recession) globally. Instead of benefiting masses, govt decided to split petrol price in to two segments: further increase in price for vehicles with engine capacity more than 800 cc (irrespective of model & condition) & categorized as luxury vehicle. Subsidize fuel by 100 Rs/lit for 800cc & motorcycles. Whereas, excluding levy, surcharges, GST & taxes, petrol price shouldn't be more than 100 Rs/lit
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Aamir Latif Mar 23, 2023 12:59pm
Flawed plan that cannot be managed in a country plagued with corruption and fraud.. However, minister has refined poor and rich definition, 800cc wala poor, above filthy rich..????
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Haroon Mar 23, 2023 02:23pm
This is a ridiculous policy. This will create a Rs 200 gap between the 'rich' and 'poor' paying for petrol per litre. Now what the supposedly 'poor' would do is get their vehicle filled with petrol and sell it for a quick Rs 100+ profit per litre. Someone in the govt has to realize how stupid this policy is. People will essentially make a business out of selling petrol.
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Haris Mar 23, 2023 03:28pm
How hard is it for a land cruiser)mercedes/honda/corolla owner to not already have a small vehicle. He will use that for low price fuel. Will the fare of rikshaws drop after low price fuel supply to them. What about public transport vehicles office vans. All this is a sham and a political stunt. Lower taxes and PDL and lower cabinet and government running exp to give subsidy to poor. All this is a political stunt to get some credability.
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Zee Mar 24, 2023 12:49am
You Govt. Totally havinv sick mental condition and pythetic plans you are smashing Nation. Even you crazy politicions know , how to covert mercedes papers show to FBR as CD 70 Motorcycle at the time of Tax Return. Most worst Govt. Of the History. King of Bad Plannings.Shame On You.
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Asad Ullah Mar 24, 2023 11:26am
How we can register?
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SYED FIDA HUSSAIN SHAH Mar 24, 2023 01:20pm
How we can register
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bonce richard Mar 24, 2023 06:52pm
@SYED FIDA HUSSAIN SHAH, Please see Punjabi Shahbaz and ask them how we get fuel at a cheap price.
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