Islamabad, 24 March 2023: The petroleum relief program, which was announced on 19 March will be implemented in three phases and “give a relief of up to Rs50 per liter to the needy,” received a strategy update from the government on Wednesday, March 22, 2023.
The government stated that it has created a two-tier pricing program that would provide relief to two-wheelers (motorcycles), three-wheelers (rickshaws), and small vehicles by classifying consumers into “poor” and “rich” categories. The report outlines the pricing strategy behind the Prime Minister’s Petroleum Relief Program.
According to the report, the campaign will target the roughly 20 million motorbikes, rickshaws, and 1.36 million small vehicles (with a capping of 30 liters of fuel) currently active across Pakistan.
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The number of automobiles that are currently in use has been estimated by the government using data from surveys and auto sales.
By charging the “rich” an additional Rs102 per liter, the “poor” will receive relief of up to Rs50 through differential pricing, where the basic price of fuel is considered to be Rs300 per liter.
According to the report, the initiative would deploy using both a “fuel card” and an e-discount using OTP.
The implementation will take place in three stages, the first of which involves raising the base fuel price (Rs 300) by Rs 75, which results in a new, unrelieved price of Rs 375, and collecting funds for an escrow account.
The government would “enroll the beneficiaries using two separate registration processes” in the second phase.
The National Database and Registration Authority (NADRA) would receive data uploaded by the Vehicle Registration Authority under one mechanism, while the consumer would register their vehicle by SMS under the other.
After the recipient has registered on the appropriate registration portal and a transaction has been completed at the gasoline station, the discount will be distributed to them in the final phase.
The duties and responsibilities of several participants in the plan, such as NADRA, the Oil & Gas Regulatory Authority, oil marketing firms, and the National Bank of Pakistan, will be under the supervision of the Ministry of Energy’s (Petroleum Division).
