Relentless fuel shocks revive govt austerity talk

The prime minister chaired a high-level meeting on Monday to review progress on the Special Relief Scheme, under which fuel subsidies will be provided to owners of motorcycles, rickshaws and vehicles up to 800cc. The scheme was launched on Sunday amid rising oil prices, with the Economic Coordination Committee (ECC) approving the package on Monday.

The targeted relief is estimated to cost the federal government around Rs25 billion a month. Tarar made the remarks while addressing a press briefing alongside Information Technology Minister Shaza Fatima Khawaja and Petroleum Minister Ali Pervaiz Malik.

Responding to a question, Tarar said Prime Minister Shehbaz Sharif had directed consultations on the austerity measures, some of which, he noted, "are still in force, such as market timings". Tarar added that "austerity measures previously taken [..] were being reviewed to assess which of the previous measures need to be revived in the present situation".

He said a decision would be taken soon. The austerity measures were announced on March 9 to mitigate the economic impact of the ongoing US-Iran war. They included a 50 per cent cut in fuel allowances for official vehicles, salary cuts for lawmakers and a partial work-from-home policy in the public sector.

The government ended the measures on June 19, except for market timings. However, in July, it emerged that the government was considering reverting to fuel conservation and austerity measures. The move comes amid renewed hostilities in the Middle East that have disrupted major oil supply routes and driven up fuel prices.

In addition to the crisis in the Strait of Hormuz stemming from the US-Iran war, trade through Bab al-Mandab - which has become a vital route for Saudi oil exports in recent months - is also facing a growing threat from Houthi rebels.

At present, the price of petrol stands at Rs375.82 per litre, while high-speed diesel (HSD) costs Rs403.32 per litre. Relief scheme rollout. Under the fuel relief scheme, users of motorcycles, rickshaws, Qingqis and vehicles up to 800cc will receive relief of Rs100 per litre.

The prime minister directed that SMS messages required for registration to avail the subsidy should be provided free of cost.

The fuel subsidy scheme for residents of Islamabad will be launched on the intervening night of September 14 and 15, while relief on petrol will be available across the country, including Azad Jammu and Kashmir and Gilgit-Baltistan, from the intervening night of September 16 and 17.

PM Shehbaz directed the administration, including the chief commissioner and inspector general of Islamabad, to remain in the field to guide the public. The public should be provided with all possible guidance in registration and other necessary steps, he said, instructing authorities to mobilise public representatives and volunteers across the country to assist citizens.

The volunteers will guide the public in completing registration and other necessary steps, while a comprehensive media awareness campaign will be launched regarding the fuel subsidy scheme. The awareness campaign will be run at full speed across print, electronic, digital and social media platforms.

The prime minister said all available means should be used to transfer the benefits of the fuel subsidy scheme to the maximum number of deserving citizens and stressed that timely information and guidance should be provided to the public for the scheme's success.

During the briefing, officials than 600,000 SMS messages had been received in the Islamabad region since the launch of the scheme until Monday afternoon. A total of 42,933 applicants had successfully registered for the PM Special Relief Scheme.

Only four pieces of information will be required for registration: identity card number, vehicle number plate, province of registration and vehicle registration date. Govt moves to contain fuel impact. Tarar said the prime minister had directed Deputy Prime Minister and Foreign Minister Ishaq Dar to ensure that transport fares did not rise following the launch of the relief scheme.

Tarar also said the steering committee for the scheme would include the chief secretaries of all four provinces, Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan. In his address, Tarar said a war room and a call centre had been established under the scheme and that "constant monitoring is going on".

Petroleum Minister Ali Pervaiz Malik said efforts were under way to ensure fuel availability. "Today, I met with private oil refineries and discussed with them for one hour how to ensure that in September or October and even if any issues emerge in the Bab al-Mandab, how we can ensure fuel availability and distribute the burden evenly," he said.

He said the government's takeaway from the present situation should be that "it should be prepared to deal with such a crisis in the future". On the reduction in the petroleum levy, the minister referred to the relief scheme and said the government was taking steps to ease the fuel burden "despite buying fuel at twice the cost".

Malik said the premier was personally supervising work on "strategic petroleum reserves, bonded schemes". He further said the targeted relief was estimated to cost roughly Rs25 billion a month, adding that "the federal government and the Ministry of Finance have given assurances".

The meeting was attended by Deputy Prime Minister and Foreign Minister Muhammad Ishaq Dar, Federal Ministers Dr Musadik Masood Malik, Ahad Khan Cheema, Muhammad Aurangzeb, Attaullah Tarar, Ali Pervaiz Malik and Shaza Fatima Khawaja, Minister of State for Finance Bilal Azhar Kayani, Special Assistant Tariq Bajwa and senior officers of relevant institutions.