Pakistan is bracing for potential fuel shortages as global oil prices surge amid the widening conflict in the Middle East. Three petroleum shipments are expected to arrive by Monday, according to Petroleum Minister Ali Pervaiz Malik.
Government Response
The developments prompted a high-level meeting on Sunday, attended by Finance Minister Muhammad Aurangzeb and Sindh Chief Minister Murad Ali Shah, following a directive from Prime Minister Shehbaz Sharif. The Prime Minister instructed the finance and petroleum ministers to collaborate with provincial governments on strategies to conserve fuel and ensure uninterrupted supply.
Finance Minister Aurangzeb indicated that Pakistan’s monthly oil import bill could rise to $600 million due to the conflict, with crude oil potentially reaching $120 a barrel if the situation escalates. The government is actively monitoring energy markets and seeking alternative plans to mitigate the financial impact.
Diplomatic efforts are underway with Saudi Arabia, Oman, and the United Arab Emirates to secure alternative fuel supplies and explore routes bypassing the Strait of Hormuz. Disruptions to LNG supply are also anticipated due to Qatar declaring force majeure.
Minister Malik emphasized the necessity of fuel-saving measures and stated Pakistan will request relief from the International Monetary Fund regarding the petroleum levy. Coordination between federal and provincial governments will be increased to prevent hoarding at petrol pumps, aided by a joint dashboard to monitor fuel reserves.
Provincial Coordination and Public Appeal
Punjab Chief Minister Maryam Nawaz also convened a meeting with the finance and petroleum ministers to review the province’s petroleum supply, demand, and reserves. An agreement was reached to adopt a conservation policy, prioritizing continued diesel supply for agricultural use.
CM Nawaz affirmed that petrol would not be sold above prescribed prices in Punjab and urged citizens not to queue at petrol pumps. She called on the “entire nation to demonstrate resilience” in the face of these challenges.
Opposition Concerns
The Tehreek Tahafuz Ayeen-i-Pakistan (TTAP) criticized the price hike as an “economic burden on the public.” TTAP leader Muhammad Zubair alleged the government would profit approximately Rs110 billion from the increased prices and questioned the management of the Federal Board of Revenue, which faces a Rs600 billion shortfall.
Frequently Asked Questions
What prompted the recent increase in fuel prices?
The government increased the prices of petrol and high-speed diesel by Rs55 per litre due to disruptions in fuel supplies through the Strait of Hormuz, stemming from the Israel-Iran war.
What steps is the government taking to address potential fuel shortages?
The government is coordinating with provincial governments to conserve fuel, seeking alternative fuel supplies from Saudi Arabia, Oman, and the United Arab Emirates, and exploring routes bypassing the Strait of Hormuz.
What is the potential financial impact of rising oil prices on Pakistan?
Pakistan’s monthly oil import bill could increase to $600 million, and crude prices could rise to $120 a barrel if the conflict escalates further.
How will Pakistan balance the demand for fuel with the economic realities facing its citizens?
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