The government says reserves are sufficient for now as daily monitoring begins amid rising oil prices and supply risks.
Prime Minister Shehbaz Sharif. Photo: Archive
Prime Minister Shehbaz Sharif on Tuesday directed the Petroleum Minister to take steps to further improve Pakistan’s oil import supply chain and that all relevant departments should remain prepared to take emergency measures until the situation stabilizes, according to a statement issued by the Prime Minister’s Office.
The prime minister chaired a meeting to review the implementation of austerity and fuel saving measures in light of the regional situation. The meeting was briefed on the progress of the measures and officials confirmed that “the directives issued by the Prime Minister are being effectively implemented.”
The meeting was attended by Deputy Prime Minister Ishaq Dar, Federal Minister for Economic Affairs Auhd Khan Cheema, Federal Minister for Finance and Revenue Muhammad Aurangzeb, Federal Minister for Petroleum Ali Pervaiz Malik, Federal Minister for Information and Broadcasting Atta Ullah Tarar, Federal Minister for Climate Change Dr. Musaddiq Malik, Federal Minister for Information Technology and Telecommunication Shaza Fatima, Minister of State for Finance and Railways Bilal Azhar Kiani, Special Assistant Tariq Bajwa, State Bank Governor Jameel Ahmad and other senior officials.
According to the press release, the Intelligence Bureau will provide “regular monitoring reports on the implementation of all measures.” At the same time, the briefings confirmed that “the country has sufficient reserves of petroleum products to meet current needs.”
Officials also confirmed that “all situations are being closely monitored and records of petroleum products are maintained to ensure that any irregularities are immediately identified.”
The press release noted that “Cabinet members have voluntarily given up their salaries” and that “positive results from fuel reductions are being seen across government departments,” with the measures expected to “help provide relief to the public under current conditions.”
Read: Pakistan has oil reserves for days, not months
The briefings also confirmed that “adequate stocks of essential medicines are available to meet national requirements” and that the Ministry of Information Technology and Telecommunications has adopted special connectivity provisions “to facilitate working from home through government e-offices.”
Pakistan currently has enough reserves of crude oil for 11 days, diesel for 21 days, gasoline for 27 days, LPG for nine days and jet fuel (JP-1) for 14 days, the Petroleum Secretary informed the Senate Standing Committee on Petroleum on Monday.
The Petroleum Secretary also warned that Pakistan could face severe gas shortage after April 14 due to disruption of LNG cargo supply. Meanwhile, the government has decided to provide a subsidy of Rs 23 billion to motorcycle and rickshaw owners using the savings generated under its austerity policy.
The government has decided to carry out a daily review of oil reserves to closely monitor the energy situation.
A committee tasked with monitoring oil prices was informed that Pakistan remained “in an adequate position in terms of fuel availability”, with March needs fully secured and supply coverage available until mid-April based on current loading planning.
According to a statement issued by the Ministry of Finance, the committee reviewed the national inventory of crude oil and refined petroleum products, import agreements and supply chain logistics.
Officials told the meeting that the country had “comfortable inventories of crude oil and key petroleum products for March, with sufficient planning to ensure continued availability through April.” Efforts are also underway to expand coverage towards the end of April.
On March 6, the government sharply increased diesel and gasoline prices by Rs 55 per liter or 20%, marking the first increase in a series of similar increases in the coming days due to the ongoing war between the United States, Israel and Iran, which has disrupted supply chains and pushed crude oil prices to a two-year high.
Read more: PM Shehbaz says oil prices will remain unchanged despite rise in international market
The increase in gasoline prices was greater than the increase in the international market, as the government chose to collect more money than necessary from motorcyclists and car owners to subsidize the use of diesel, mainly in public transport and the agricultural sector.
Petroleum Minister Ali Pervaiz Malik announced the new rates with immediate effect after Prime Minister Shehbaz decided to increase prices of petroleum products on a weekly basis.
The new price of high-speed diesel will be Rs 336 per liter and petrol will be Rs 321 per liter, Malik said in a pre-recorded speech. He was accompanied by Deputy Prime Minister Ishaq Dar and Finance Minister Muhammad Aurangzeb.
The government also increased tax on petrol to a record Rs 105.4 per liter but reduced it to Rs 55 per liter on diesel.
