The federal government has decided to provide a subsidy of 23 billion rupees from savings generated under the austerity policy, aiming to offer relief to the public amid rising inflation.
During a meeting of the Senate Standing Committee on Petroleum, the Secretary Petroleum briefed that the subsidy will be provided to motorcycle and rickshaw owners, benefiting approximately 30 million two-wheelers and three-wheelers.
According to officials, the subsidy will be distributed to eligible beneficiaries based on data from the Benazir Income Support Programme, while OGRA and the Petroleum Division have started working on the implementation plan. It was also stated that savings under the austerity policy will be redirected to public relief, similar to the measures taken during the COVID-19 period.
Committee members questioned the source of the 23 billion rupees and the measures taken to generate these savings, emphasizing that the benefit of currency improvement should reach the public instead of companies. Officials responded that various cost-saving measures have been implemented under the Prime Minister’s directives.
The Secretary Petroleum also briefed the meeting on supply concerns following regional tensions, stating that global diesel prices have increased from 88 dollars to 187 dollars per barrel, while petrol has reached 130 dollars per barrel.
He further explained that petroleum supply has been affected due to tensions in the Middle East, as around 70 percent of imports come from the region and shipping routes are facing disruptions. However, efforts are being made to optimize the use of existing reserves.
He added that permission has now been granted to import oil below Euro 5 standards to maintain supply, and although petrol prices have increased, availability remains stable across the country.
According to the Secretary, crude oil reserves are sufficient for 11 days, diesel for 21 days, and petrol for 27 days, while LPG reserves are available for 9 days and jet fuel for 14 days. He also mentioned that petroleum prices may be determined on a weekly basis, and efforts are underway to procure oil from Russia.
