Govt allocates Rs125 billion to cushion fuel prices amid global oil surge

The federal government has allocated Rs125 billion through budget savings and development cuts to absorb the impact of rising global oil prices and limit increases in domestic fuel rates.

The decision was reviewed in a meeting chaired by Prime Minister Shehbaz Sharif, where officials said that Rs69 billion had already been used to offset potential increases in fuel prices.

According to the briefing, global trends could have raised petrol prices by Rs127 per litre and high-speed diesel by Rs252 per litre, but the government maintained prices at Rs322 per litre for petrol and Rs335 per litre for diesel.

Officials said petrol prices could have reached Rs544 per litre and diesel Rs790 per litre if full global adjustments were passed on to consumers.

The meeting was informed that petroleum supply and demand are being monitored through a digital system, while import arrangements for April have already been finalised to ensure continuity.

Authorities said Pakistan has avoided supply disruptions and shortages observed in other countries during the recent spike in global oil prices.

The government also reviewed a targeted fuel subsidy programme for motorcycle and rickshaw users, which will be implemented through a mobile application using a quota-based system for eligible consumers.

The prime minister directed provincial governments to facilitate vehicle registration in the names of motorcycle and rickshaw owners to enable inclusion in future relief schemes.

He also instructed coordination with provinces, Azad Jammu and Kashmir, and Gilgit-Baltistan to ensure uniform implementation of conservation and relief measures.

As part of demand management, citizens were urged to reduce fuel consumption by limiting non-essential travel and increasing the use of teleconferencing.

The government has introduced austerity measures including an additional weekly holiday, reductions in fuel allocations for ministers, and restrictions on protocol vehicles.