The plan includes weekly oil price reviews, holidays and work-from-home measures.
To cover the losses, successive governments increased electricity prices and imposed a surcharge of Rs 3.23 per unit to pay off debts incurred by power distribution companies, raising power prices to the highest levels in the region. Photo: archive
Faced with the possible closure of the Strait of Hormuz and fears of an energy crisis, the federal government finalized an energy conservation plan on Friday.
According to sources, to reduce the demand for petroleum products and Regasified Liquefied Natural Gas (LNG), a new pricing mechanism has been approved, according to which the prices of petroleum products will be reviewed every week. Sources say that in the first phase, the number of holidays will be increased on the pattern of the mechanism adopted during the COVID-19 pandemic.
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In addition, the government has prepared a strategy consisting of the first, second and third phases, which includes three to four dozen proposals.
In the first phase, the government will implement measures in the public sector, while in the second phase an online allocation system will be introduced in private schools, universities and hospitals; In addition, the prices of petroleum products will be reviewed weekly.
In view of the changing situation in the region, a meeting of the high-level committee on reserves and consumption of petroleum products was held under the chairmanship of Prime Minister Shehbaz Sharif. According to sources, Finance Minister Muhammad Aurangzeb briefed Chief Minister Shehbaz in the meeting.
According to sources, a plan has been prepared to reduce working hours in offices, educational institutions and service organizations, while a virtual education system in educational institutions and a work-from-home mechanism for offices are also being considered.
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According to officials, thanks to these measures it will be possible to effectively use existing fuel reserves and reduce demand. A weekly price review mechanism for petroleum products is also being studied under the plan.
It has also been decided to carry out a strict crackdown to prevent hoarding, illegal storage and smuggling and Prime Minister Shehbaz will take important decisions in this regard.
