The Federal Government has announced to increase the prices of petroleum products in view of their record high prices in the international market.
The announcement was made by Minister for Petroleum Ali Pervaiz Malik during a news conference in Islamabad tonight, flanked with Minister for Finance and Revenue Muhammad Aurangzeb.
Ali Pervaiz Malik said oil prices have skyrocketed in the international market due to the ongoing war in the Middle East. He said the war has also engulfed not only the entire region, but the entire world as well.
The Minister said the government will now shift its focus towards targeted subsidies rather than blanket subsidies to better protect the most vulnerable segments of the society. He noted that the continuous surge in international oil prices necessitated the price adjustment, bringing petrol to 458.40 rupees per liter and diesel to 520.35 rupees per liter in the country.
Ali Pervaiz Malik highlighted that the federal government has saved one hundred twenty-nine billion rupees by adopting various austerity measures. These savings intended to act as a fiscal shield, minimizing the direct impact of global price hikes on the common man.
Speaking on the occasion, Finance Minister Muhammad Aurangzeb said the government has decided to implement “Targeted Subsidy Program” to protect the poor and middle class of the society. He said the direction of resources is being diverted to the most deserved and needy segment of the society.
In this regard, the government will provide assistance of one hundred rupees per liter for the motorcyclists or two-wheelers, with a maximum cap of twenty liters every month. He said this subsidy will be available for next three months.
For small farmers, fifteen hundred rupees per acre, one time subsidy, will be given to assist them for harvesting.
For inter-city public transport and freight transport, one hundred rupees per liter subsidy will be given for one month.
Muhammad Aurangzeb said seventy-thousand rupees per month will be given to the trucks while eighty-thousand rupees will be given to Heavy-duty vehicles.
The Minister said one hundred thousand rupees subsidy will be given to the passenger or public service buses. He said the government will also review these subsidies next month.
He said the government will also provide subsidy to Pakistan Railways to extend help to reduce the fares of lower class.
The Finance Minister said the government is considering to implement the revised markets timings and it will be implemented next week after having consultations with the provincial governments.
