- The government plans to conserve energy as oil prices rise.
- Pakistan could face a $600 million increase in its monthly oil import bill.
- Oil prices may hit $120 if conflict escalates: officials.
Oil Minister Ali Pervaiz Malik said three shipments of gasoline are expected to arrive in Pakistan on Monday amid concerns that rising tensions in the Middle East could affect fuel supplies in the country.
The minister made the statement during a meeting to review the evolving regional situation and its possible impact on Pakistan’s energy supply and economy.
The meeting was attended by Sindh Chief Minister Murad Ali Shah, Finance Minister Muhammad Aurangzeb, Petroleum Minister Ali Pervaiz Malik, Sindh Home Minister Ziaul Hassan Lanjar, Chief Secretary Asif Hyder Shah, Energy Secretary Shuhab Ansari and other officials.
The federal government increased petrol and diesel prices by Rs 55 per liter as rising global oil prices, fueled by the US-Israel war with Iran, put pressure on domestic energy costs.
The meeting, held at the CM House in Karachi, provided detailed information on the rise in global oil prices and the country’s fuel reserves.
Officials warned that if the conflict in the Middle East escalates further, crude oil prices could hit $120 a barrel, putting additional pressure on Pakistan’s economy. Participants also discussed emergency energy conservation measures aimed at managing fuel consumption and ensuring the continuity of economic activity.
On the occasion, the Sindh Chief Minister emphasized the need for responsible use of energy and public cooperation. He said the government’s priority was to keep the wheels of the national economy moving while managing the energy situation prudently.
The prime minister said the proposals discussed at the meeting would be placed before the cabinet for further deliberation and decision-making.
FinMin told the meeting that the federal government was closely monitoring global energy markets and preparing contingency plans to deal with the financial impact of rising oil prices.
He added that if crude oil prices were to rise significantly, Pakistan’s monthly oil import bill could rise by up to $600 million, putting pressure on the country’s external account.
Oil Minister Malik said fuel conservation measures were essential to ensure existing reserves last longer and remain available for essential sectors.
The meeting was informed that three cargoes of petrol were expected to arrive in Pakistan on Monday.
The meeting was also informed that Qatar had issued a force majeure declaration that could affect LNG supplies, raising further concerns about the country’s energy prospects.
Participants were informed that the federal government had also stepped up diplomatic engagement with Saudi Arabia, Oman and the United Arab Emirates to ensure the supply of alternative fuels through routes outside the Strait of Hormuz.
The meeting also decided to strengthen coordination between federal and provincial authorities to prevent hoarding and ensure smooth distribution of fuel throughout the country.
The delegation led by federal ministers also informed the meeting that the government would seek relief on petroleum tax during upcoming discussions with the International Monetary Fund to reduce the financial burden on consumers.
The participants agreed to maintain close coordination between the federal and provincial governments to effectively manage the evolving energy situation and safeguard the country’s economic stability.
