Govt says reserves sufficient for now as daily monitoring begins amid oil price surge and supply risks
Prime Minister Shehbaz Sharif. Photo: File
Prime Minister Shehbaz Sharif on Tuesday instructed the Petroleum Minister to take steps to enhance Pakistan’s petroleum import supply chain further, and that all relevant departments should remain prepared for emergency measures until the situation stabilises, according to a statement released by the Prime Minister’s Office.
The prime minister chaired a meeting to review the implementation of fuel-saving and austerity measures in light of the regional situation. The meeting was briefed on the progress of the measures, with officials confirming that “directives issued by the Prime Minister are being effectively enforced.”
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, Petroleum Minister 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 Telecom 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, briefings confirmed that “the country has sufficient petroleum product reserves to meet current needs.”
Officials also confirmed that “all situations are being closely monitored, and records of petroleum products are maintained to ensure any irregularities are immediately identified.”
The press release noted that “cabinet members have voluntarily foregone their salaries” and that “positive results from fuel reductions in government departments are being observed,” with the measures expected to “help provide relief to the public under current conditions.”
Read: Pakistan has oil reserves for days, not months
Briefings also confirmed that “adequate reserves of essential medicines are available to meet national requirements,” and that special connectivity arrangements have been made by the Ministry of Information Technology and Telecom “to facilitate work-from-home through government e-offices.”
Pakistan currently has crude oil reserves sufficient for 11 days, diesel for 21 days, petrol for 27 days, LPG for nine days, and jet fuel (JP-1) for 14 days, the secretary of petroleum informed the Senate Standing Committee on Petroleum on Monday.
The petroleum secretary also warned that Pakistan could face a severe gas shortage after April 14 due to disrupted LNG cargo supplies. Meanwhile, the government has decided to provide a Rs23 billion subsidy for motorcycle and rickshaw owners using savings generated under its austerity policy.
The government has decided to conduct a daily review of petroleum reserves to closely monitor the energy situation.
A committee tasked with monitoring petrol prices was informed that Pakistan remained “adequately positioned in terms of fuel availability”, with March requirements fully secured and supply coverage available up to mid-April under current cargo 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 arrangements, 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 in place to ensure continued availability during April”. Efforts are also underway to extend coverage towards the end of April.
On March 6, the government sharply increased diesel and petrol prices by Rs55 per litre or 20% — marking the first increase in a series of similar surges in the coming days due to the ongoing US-Israel and Iran war, which has disrupted supply chains and pushed crude oil prices to two years’ highest level.
Read more: PM Shehbaz says petroleum prices to remain unchanged despite increase in int’l market
The increase in petrol prices was more than the surge in the international market, as the government chose to collect more money than required from motorcyclists and car owners to subsidise the use of diesel, mostly by the public transport and the agriculture sector.
Petroleum Minister Ali Pervaiz Malik announced the new rates with immediate effect after PM Shehbaz decided to increase the petroleum products prices on a weekly basis.
The new price of high-speed diesel will be Rs336 per litre and petrol Rs321 per litre, said Malik in a pre-recorded speech. He was accompanied by Deputy Prime Minister Ishaq Dar and Finance Minister Muhammad Aurangzeb.
The government also increased the petroleum levy on petrol to a record Rs105.4 per litre but reduced it to Rs55 per litre on diesel.
