Government raises petrol price by Rs6.88, HSD by Rs5.62 for Sep 17

On July 17, the government announced anew pricing mechanismunder which petroleum product prices would be reviewed and notified on a daily basis, replacing the weekly pricing mechanism, as renewed tensions between the United States and Iran continued to drive volatility in global oil markets and raise concerns over fuel supplies.

Prime Minister Shehbaz Sharif on Sunday announced a special relief scheme offering Rs100 per litre off petrol for motorcycles, three-wheeler rickshaws, and cars up to 800cc engine, in an attempt to shield lower-income consumers from the impact of sharply rising petroleum prices. “In this hour of difficulty, we will not leave the public alone.

To alleviate the burden of rising oil prices on users of motorcycles, rickshaws, Qingchis, and small vehicles, a special scheme is being initiated,” said a statement issued by the Prime Minister’s Office (PMO). Under the proposal, an estimated 11.8 million beneficiaries would be covered.

Around 10 million two-wheeler users and 800,000 three-wheeler users would be entitled to relief on 20 litres of fuel per month, translating into a maximum monthly benefit of Rs2,000 per beneficiary. Another one million users of cars of up to 800cc would receive relief on 30 litres per month, providing them a maximum benefit of Rs3,000 each.

The government estimated the monthly fiscal impact of the scheme at Rs24.6 billion – Rs20 billion for two-wheelers, Rs1.6 billion for three-wheelers and Rs3 billion for cars.