Givt absorbed the impact for two to three weeks, supporting the load internally while ensuring uninterrupted availability.
ISLAMABAD:
The government on Monday defended its handling of rising fuel prices, telling the National Assembly that emergency measures, including subsidies exceeding 100 billion rupees, were put in place to protect consumers after global oil markets were rocked by the Iran crisis and disruptions to key supply routes.
Delivering a policy statement in the House, Oil Minister Ali Pervaiz Malik said the situation took a dramatic turn following the February 28 attack on Iran, which disrupted global energy flows, particularly through the Strait of Hormuz, through which 25 to 30 percent of the world’s oil supply passes.
He said crude oil prices, which had hovered around $70 a barrel, rose to $170, while diesel prices shot up to $280 in global markets.
“No one was prepared for such conditions,” the minister said, adding that the government had to quickly come up with a response plan after the crisis developed.
He said authorities chose not to allow shortages or chaos in fuel supplies, noting that one option had been to freeze prices at the cost of long queues and public distress.
Instead, the government absorbed the shock for two to three weeks, bearing the burden internally while ensuring uninterrupted availability.
He said alternative supply routes were organized after the disruptions in Hormuz, and that Prime Minister Shehbaz Sharif, the deputy prime minister and the army chief engaged Gulf countries to secure supplies.
Malik thanked Saudi Arabia, the United Arab Emirates and Oman for facilitating oil deliveries through special deals, while crediting Iran for allowing Pakistani vessels to pass through the Strait of Hormuz despite tensions.
The minister said Pakistan, which depends on Hormuz for around 90 percent of its oil imports, was facing cascading challenges as LNG supplies were also affected, making a long-term gas deal ineffective.
He said the government had convened a broad national consultation, involving the president, prime minister, chief ministers of the four provinces, chief minister of Azad Kashmir and caretaker chief minister of Gilgit-Baltistan, to formulate a unified response.
“All of us collectively ensured that people were not forced to stand in queues,” he said, adding that specific relief mechanisms were designed for all segments, from motorcyclists to farmers.
Detailing the relief measures, Malik said the subsidies were being delivered through a transparent technology-driven system developed by the IT Ministry, and the funds were already running into millions.
A subsidy of Rs 100 per liter for motorcyclists has been introduced for three months, while inter-city transport has also been subsidized.
Bus owners receive Rs 100,000 per month and railway fares for the general public have not been increased.
He added that in some cases government-run intercity transportation services had been made free of charge.
Farmers are being supported through Kisan Cards and other digital platforms, while uninterrupted gas supply to 10 fertilizer plants has been ensured to avert a fertilizer crisis, keeping prices below Rs 4,500.
The minister said a committee of ministers is reviewing the availability and prices of oil and fertilizers on a daily basis, while domestic gas supply has been managed to ensure availability during peak cooking hours.
He acknowledged that while consumers faced price pressures, the government had prioritized uninterrupted supply over shortages.
However, the opposition harshly criticized the government’s attitude.
During the debate, lawyer Gohar Ali Khan questioned the logic behind the price increases, saying the government had increased fuel prices more sharply than countries in the region.
He alleged that while world prices increased by around three per cent, Pakistan increased prices by up to 20 per cent, and then increased them further by 42 to 54 per cent.
He also criticized the imposition of higher taxes and questioned why the government had not asked oil companies to reduce their profits, as was done in India.
Gohar said the government had first increased the petroleum tax to Rs 160 per liter before reducing it to Rs 80, and asked that the debate continue in the next session.
He also pointed to economic difficulties, citing the case of a woman who allegedly starved to death despite allocations from the Benazir Income Support Programme.
He criticized the prime minister for not attending parliament, in contrast to the previous PTI government.
Responding to criticism, Minister Malik said the opposition’s concerns were not based on complete information, suggesting that details had not been adequately conveyed at the provincial level.
He argued that fuel prices had risen globally by up to 80 percent in some cases, and that Pakistan’s response had focused on protecting the public while ensuring continuity of supply.
