Prime Minister Shehbaz chairs a meeting on austerity measures. PHOTO: SCREEN CAPTURE
ISLAMABAD:
Prime Minister Shehbaz Sharif said on Friday night, the eve of Eidul Fitr, that he had rejected advice to increase fuel prices further and that the federal government would absorb the burden itself.
Two weeks ago, the government sharply increased diesel and petrol prices by Rs 55 per liter or 20%, 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.
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.
However, Prime Minister Shehbaz Sharif decided not to increase prices of petroleum products last week, keeping his promise to the public despite a further rise in international oil prices.
The Gasoline Price Monitoring Committee was informed on Monday that the country had adequate fuel availability for March and that coverage was available until mid-April based on current load planning and supply agreements, with efforts being made to extend it further towards the end of next month.
Committee members conducted a comprehensive review of petroleum products stocks across the country and received detailed information on the current national inventory of crude oil and refined petroleum products, ongoing import agreements and supply chain logistics.
Earlier, Petroleum Secretary Hamed Yaqoob Sheikh said the country currently had 21 days’ worth of diesel reserves and 27 days’ worth of gasoline reserves.
The Petroleum Secretary briefed the Senate Standing Committee on Petroleum on the country’s fuel reserves and the impact of rising tensions in the Middle East on global energy supplies.
Sheikh said the country also had nine days’ worth of liquefied petroleum gas (LPG) reserves and 14 days’ supply of JP-1 aviation fuel. The Petroleum Secretary said that around 70% of Pakistan’s oil supply came from the Middle East and the ongoing regional tensions had disrupted shipments, currently affecting the movement of vessels.
