Petroleum Minister Ali Pervaiz Malik has announced that the government will reintroduce a targeted subsidy system to provide relief to the public if global oil prices continue to rise amid the ongoing war situation.
Speaking to media after a key meeting of the Petroleum Committee, Ali Pervaiz Malik said the government would restore the targeted subsidy mechanism to protect low income groups if international conflict does not end and petroleum prices keep climbing.
Responding to a question on whether petrol prices in the country would decrease, the minister cited global and regional tensions as the primary factor affecting prices. He said that although international petroleum prices had shown a slight decline two to three days earlier, they have since started rising rapidly again.
Explaining the pricing mechanism, the minister said the government maintains a seven day price averaging system to prevent long queues at petrol pumps and avoid inconvenience to the public.
He said that any fluctuation in international petroleum prices is passed on directly to consumers rather than being absorbed by the government.
The minister said limited fiscal space under the International Monetary Fund program restricts the governments ability to independently reduce fuel prices.
He added that a decrease in petrol prices is only possible once global tensions ease, noting that a sustained ceasefire in the Middle East or the wider region would automatically benefit the Pakistani public.
Ali Pervaiz Malik reiterated that if the war does not stop and prices keep rising, the government will bring back the targeted subsidy system to ensure relief and protection for the poorest segments of society.
