Pakistan is anticipating three petroleum shipments to arrive by Monday, according to Petroleum Minister Ali Pervaiz Malik, as the government grapples with rising global oil prices and potential supply disruptions stemming from the escalating conflict in the Middle East.
The announcement followed a meeting on Sunday between Malik, Finance Minister Muhammad Aurangzeb, and Sindh Chief Minister Murad Ali Shah, convened after Prime Minister Shehbaz Sharif directed the ministers to collaborate with provincial governments on strategies to conserve fuel and ensure uninterrupted supply. CM House released a statement indicating the federal delegation provided a detailed briefing on the recent price increases and current fuel reserves.
Aurangzeb warned that Pakistan’s monthly oil import bill could surge to $600 million due to the ongoing conflict, adding that the government is closely monitoring global energy markets and developing contingency plans to mitigate the financial impact of rising prices. He cautioned that crude oil prices could reach $120 per barrel if the conflict intensifies, according to a statement from CM House.
The government is actively pursuing alternative fuel supply arrangements with Saudi Arabia, Oman, and the United Arab Emirates, and is exploring routes that bypass the Strait of Hormuz, officials said. Malik also noted anticipated disruptions to Liquefied Natural Gas (LNG) supplies due to Qatar declaring force majeure.
Malik emphasized the necessity of fuel-saving measures to extend existing reserves and indicated Pakistan would request relief from the International Monetary Fund regarding the petroleum levy. The federal and provincial governments agreed to enhance coordination to prevent hoarding at petrol pumps, with Aurangzeb outlining plans for a joint dashboard to monitor fuel reserves.
CM Shah affirmed that all proposals discussed during the meeting would be presented to the Sindh cabinet for review. He stressed the importance of responsible energy consumption and public cooperation, stating that maintaining a functioning economy is the government’s primary objective.
A similar meeting took place on Sunday between Punjab Chief Minister Maryam Nawaz, Aurangzeb, and Malik. PTV News reported that an agreement was reached to implement a conservation policy to balance fuel supply and demand, with a particular focus on ensuring continued diesel supplies for the agricultural sector. Nawaz stated that the sale of petroleum products above prescribed prices would not be tolerated and that citizens should not face long queues at petrol pumps.
Nawaz called for national resilience in the face of these challenges and ordered a strict crackdown on hoarding, directing district administrations to continuously monitor petroleum supplies. The Punjab Enforcement and Regulatory Authority (PERA) and the Transport Department were instructed to monitor the situation and accept appropriate action.
The government increased petrol and high-speed diesel prices by Rs55 per litre on Friday, the largest hike on record, in response to the economic fallout from the conflict in the Middle East. The ex-depot price of high-speed diesel is now Rs335.86 per litre, a roughly 20% increase from Rs280.86 per litre. Petrol prices were revised to Rs321.17 per litre from Rs266.17 per litre, representing an increase of approximately 17%.
The Tehreek Tahafuz Ayeen-i-Pakistan (TTAP) opposition alliance criticized the price hike as an “economic burden on the public,” demanding relief for citizens and the restoration of democratic and judicial integrity. TTAP leader Muhammad Zubair questioned the pricing, alleging that the government would profit approximately Rs110 billion from the increase, and criticized the Federal Board of Revenue’s (FBR) reported Rs600 billion shortfall.
Zubair argued that the price increase would disproportionately affect low-income individuals and motorcyclists, raising the cost of all goods and services. He also criticized the government for not reducing fuel and other perks for the bureaucracy.
