Minister of State for Petroleum Musadik Masood Malik said on Monday that the government will charge Rs100 more for petrol from the affluent so that relief could be provided to the low-income segments in fuel tariff.
We’ll raise the cost of petrol for the rich while lowering it for the poor. The higher prices that the rich are paying would be used to supply low-income consumers with subsidized fuel, he declared at a press conference today.
Malik’s remarks came a day after Prime Minister Shehbaz Sharif announced a relief programme for the poor, under which they will receive a subsidy of Rs50 on every gallon of fuel.
The prime had said that the relief would be offered to low-income consumers who own motorbikes, rickshaws, 800cc vehicles, or other small cars after sitting over a review meeting on the relief package.
Malik provided further detail on the subsidy today, stating that PM Shehbaz had instructed the ministry to raise the subsidy to Rs100. The poor will pay Rs. 100 less, while the rich will pay Rs. 100 more.
He revealed that the petroleum subsidy programme would go into effect without any subsidies within the next six weeks.
The minister continued by stating that the finance for the plan will be provided by the tax rate that people with higher incomes would be paying.
Malik recalled that in the past, a comparable technique had also been used in the gas rates, resulting in a threefold reduction in the poor’s gas expenses relative to the rich’s.
The prime minister and Nawaz Sharif gave us the order to separate the petrol prices for the rich and poor a week ago. Thus, in accordance with these directives, we gave the premier a plan yesterday,” he said.
The entire premise of the subsidy, continued Malik, was that those who were living in palaces and driving fancy cars should pay a fair proportion for the goods.
“We will take from God’s blessing and give to those who are working hard to provide for their families. This is our policy, and everything else will follow it as well, he continued.
Petrol Price Hike
The government increased the price of all petroleum products last week, with the exception of the insignificant light diesel oil, by up to Rs13 per litre for the following two weeks.
The surge, according to the finance ministry, was brought on by both Platts Singapore price growth and rupee depreciation over the previous two weeks.
The most overpriced high-speed diesel (HSD) rates set a new record with the most recent review, reaching Rs293 per litre. Due to a rise in transportation costs, the HSD price adjustment has a direct effect on consumer pricing.
The per-litre price of petrol was increased by Rs5 and that of HSD by Rs13. Since Jan 15, the government has increased the prices of HSD and petrol by Rs65 and Rs62 per litre, respectively.