Pakistan’s Rs100-a-litre fuel relief to cost up to Rs30b a month

Dubai: Pakistan’s new fuel relief programme could cost the government between Rs25 billion and Rs30 billion every month, Petroleum Minister Ali Pervaiz Malik said on Monday, as officials revealed how motorists can register for the Rs100-per-litre subsidy announced a day earlier.

The programme could cost around Rs300 billion if it runs for 10 months, Malik said at a press conference alongside Information Minister Attaullah Tarar and IT Minister Shaza Fatima Khawaja, Geo News reported.

Prime Minister Shehbaz Sharif launched the scheme on Sunday following a sharp rise in fuel prices, offering targeted relief to millions of motorists.

Under the programme, motorcyclists, rickshaw and Qingqi drivers and owners of cars with engines of up to 800cc will receive a Rs100 discount per litre of petrol, subject to monthly limits.

Two- and three-wheelers will qualify for subsidised petrol of up to 20 litres a month, while cars of up to 800cc will receive the discount on a maximum of 30 litres a month.

The scheme is being introduced first in Islamabad from Monday night before being expanded across Pakistan from Wednesday night.

How motorists can register

Khawaja said eligible motorists must first register for the programme.

Applicants need to send their CNIC number from a SIM registered in their name to 9771, followed by details including their vehicle registration number, province or city and registration date.

The province provided must correspond to where the motorcycle or vehicle is registered.

Registration needs to be completed only once. When buying petrol, registered motorists can then send “TOK” to 9771 to obtain a fuel token.

Khawaja warned people not to disclose their CNIC or other personal information to anyone, saying the government would not seek additional personal data or charge a registration fee.

Officials would identify and correct problems with the system as the nationwide rollout progressed, she added.

Government seeks funds for subsidy

Malik said Shehbaz had instructed the government to mobilise additional resources to finance the programme.

Pakistan imports about 90 per cent of its energy requirements, according to the minister, leaving the economy highly vulnerable to swings in international energy prices.

He said the government had previously arranged funding for targeted subsidies and would again seek additional resources to cushion consumers from the impact of rising fuel costs.

The government is also seeking to prevent the increase in fuel prices from feeding directly into transport costs.

Tarar said the prime minister had instructed authorities that public transport fares should not rise following the introduction of the relief package.

Malik noted that much of Pakistan’s public transport system relies on diesel and said Deputy Prime Minister and Foreign Minister Ishaq Dar had been tasked with consulting provincial governments on the issue.

The government is simultaneously reviewing austerity measures as it looks for ways to fund the subsidy without placing an additional burden on consumers.

The latest details provide the first indication of the potentially substantial fiscal cost of the fuel relief programme — up to Rs30 billion every month — as Pakistan attempts to shield lower-income motorists from the impact of higher global energy prices.