Three petroleum shipments are expected to reach Pakistan today, Petroleum Minister Ali Pervaiz Malik informed a briefing called to discuss rising global oil prices and fuel reserves amid the widening Middle East conflict on Sunday.
The meeting attended by Finance Minister Muhammad Aurangzeb and Sindh Chief Minister Murad Ali Shah comes a day after Prime Minister Shehbaz Sharif directed the finance and petroleum ministers to work with provincial governments on a strategy to conserve and ensure uninterrupted supply of petroleum products amid fuel shortage concerns sparked by the Israel-Iran war.
The federal government delegation offered a detailed briefing to the Sindh CM on the recent price hike and fuel reserves, according to a statement issued by CM House.
Finance Minister Aurangzeb told the meeting that Pakistan’s monthly oil import bill could increase to $600 million in the backdrop of the conflict, adding that the government is continuously monitoring global energy markets and preparing alternative plans to deal with the financial impact of rising oil prices. Additionally, crude prices could rise to $120 a barrel if the conflict escalates further.
Diplomatic contacts are ongoing with Saudi Arabia, Oman and the United Arab Emirates for alternative fuel supplies, the delegation said, noting that efforts are underway to ensure alternate fuel supply routes other than the Strait of Hormuz. Due to Qatar declaring force majeure, LNG supply disruptions are also anticipated, the petroleum minister added.
Fuel-saving measures are necessary so that existing reserves last longer, Malik asserted. Additionally, he said, Pakistan would request the International Monetary Fund for relief in the petroleum levy.
The federal and provincial governments decided to increase coordination to prevent hoarding at petrol pumps, with Aurangzeb briefing the meeting on a joint dashboard being prepared to monitor fuel reserves.
Emergency conservation measures were discussed, with CM Shah affirming that all proposals discussed in the meeting would be presented to the cabinet for consideration.
Responsible use of energy and public cooperation are necessary, with smooth functioning of the economy the government’s top priority, the CM said.
The federal and provincial governments decided to maintain close coordination to manage the energy situation.
Other attendees of the meeting included Additional Secretary Petroleum Division Zafar Abbas, Executive Director Oil and Gas Regulatory Authority Atif Sajjad, Director General (Oil) Petroleum Division Imran Ahmed, Member (Oil) Oil and Gas Regulatory Authority Zainul Abidin, and Managing Director Sui Southern Gas Company Muhammad Amin and Muhammad Idrees.