Government Launches Targeted Fuel Subsidy Scheme: Subsidized Petrol Quotas and Rs100 Relief per Litre for Motorcycles and 800cc Vehicles
ISLAMABAD: Federal Ministers Shaza Fatima Khawaja, Ali Pervaiz Malik and Attaullah Tarar announced in a high-level joint press conference the official launch of the Prime Minister’s targeted fuel relief program for the protection and relief of vulnerable segments of the society against the escalating global petroleum prices.
The relief measures implemented have been modified, and owners of passenger vehicles that have a capacity of less than 800 cc will now be provided with petrol at a subsidized price of up to 30 litres per month, while operators of motorcycles and rickshaws will be allotted petrol of up to 20 litres per month at a fixed discount of Rs100 per litre.
Eligibility Criteria and Rollout Schedule
The administration has set eligibility criteria that are tougher: Motorcycles must be 15 years old or newer, and vehicles must be 20 years old or newer. The scheme will officially commence operation in Islamabad tonight at midnight and later will be rolled out across the country.
Step-by-Step Registration and Token Generation Mechanism
Federal Minister for Information Technology Shaza Fatima Khawaja outlined the working of the two-step digital process:
Citizens will need to register by sending an SMS to 9771 with the Vehicle Registration Number, Computerised National Identity Card (CNIC) number, First letter of the Province and Registration Date of the vehicle.
When applicants go to the fuel pump to refuel, they will need to send an SMS message “TOK” to 9771 number to create a digital token that is safe to use. This is a token that is presented to the fuel station attendant which unlocks the discounted rate.
The motorcycle recipients will get Rs500 off the 5-litre fill, while the 800cc car owners will get Rs1,000 off the 10-litre fill. The government also sent a warning regarding fraud, stating that it will not contact people on the phone, via text messages or WhatsApp to ask for generated token numbers.
By Ali Pervaiz Malik, Director of Fiscal Affairs, OIC Centre for Middle East Dialogues, and Energy Pressures, OIC Centre for Middle East Dialogues, Pakistan.
Reacting to the media, Ali Pervaiz Malik, the federation petroleum minister said that Pakistan consumes about 90 per cent of its energy needs and hence, state affairs require utmost financial prudence. During an unprecedented worldwide energy crisis, the relief package will target the country’s poorest families, he said.
Acknowledging past price crises, Malik said that Brent crude reached historic peaks during the previous crises. He commended the refiners for adjusting formulas and announced that key refinery investment deals valued at $5 billion to $6 billion are planned to be approved by October 1st to enhance the capacity for fuel processing in the domestic market.
The minister assured that the fuel subsidy mechanism will not be loading the circular debt and the Ministry of Finance and the State Bank of Pakistan (SBP) have rationalized direct provision of liquidity to the fuel pump operators. The scheme will roll out at 150 petrol pumps in Islamabad tonight and will expand to other parts of the country in 24 hours.