Targeted fuel subsidy may return if Gulf tensions persist
• Govt stands firm on petroleum pricing deregulation plan • Petroleum minister defends daily pricing, claims ‘transparent’ mechanism protects consumers from price shocks • Senate panel directs Ogra to submit proposal that addresses dealers’ concerns ISLAMABAD: Undeterred by public criticism, the government on Thursday indicated it could reintroduce targeted fuel subsidies within the next few…
Pakistan's government has indicated it may reintroduce targeted fuel subsidies within days if tensions in the Middle East continue, despite public criticism of its plan to deregulate petroleum prices. Petroleum Minister Ali Pervaiz Malik defended the plan, stating it would provide financial support to provinces if the US-Iran conflict persists.
The minister argued that the transparent daily pricing mechanism, introduced to protect consumers from sudden price shocks, was necessary to recover legitimate fuel costs from consumers. He claimed that real relief would come when global oil prices fell, a goal being pursued by the Chief of Defence Staff and Prime Minister Shehbaz Sharif.
The government's plan was met with mixed reactions from the Senate Standing Committee on Petroleum, with some praising the daily pricing system while others criticized it as "slow poison." The committee directed Ogra to engage stakeholders and submit a proposal addressing dealer concerns. The government is also examining the petroleum pricing mechanism, with the committee set to formulate a comprehensive roadmap for reforms to promote transparency, competition, efficiency, and consumer protection.
Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
