Pakistan is considering shifting to a weekly review mechanism for petroleum product price as authorities assess the potential impact of escalating tensions in the Middle East following recent military strikes involving Israel, the United States, and Iran. Officials say the move is being discussed to manage market uncertainty and discourage fuel hoarding.
Read More: Govt monitoring petroleum supplies amid Gulf tensions: Aurangzeb
According to government sources, various proposals are under consideration to determine petrol and diesel prices on a weekly basis instead of the existing fortnightly system. The discussion gained urgency after disruptions linked to the Strait of Hormuz, a vital global oil supply route, raised concerns about potential volatility in international energy markets.
Officials noted that a weekly price adjustment system could help prevent stockpiling by fuel dealers who might otherwise hold back supplies if they anticipate a significant increase in prices. Authorities believe a shorter review cycle would ensure that changes in global oil prices are reflected more quickly in domestic fuel prices, reducing incentives for speculative hoarding.
Sources added that if tensions in the region persist, petrol prices in Pakistan could increase by up to Rs20 per litre, while diesel prices may rise by as much as Rs45 per litre due to potential disruptions in global supply and rising import costs.
Earlier, Muhammad Aurangzeb informed the Senate Standing Committee on Finance that Pakistan currently has petrol and diesel reserves sufficient for about 28 days. The committee meeting was chaired by Salim Mandviwala, where officials discussed the broader economic situation and possible contingency measures.
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Aurangzeb said the government is also considering conservation measures similar to those adopted during the Covid-19 period to ensure efficient use of energy resources. He stressed that there is no immediate shortage of oil and gas in the country but urged the public to follow energy conservation practices.
The finance minister added that Shehbaz Sharif has formed a special committee to monitor petroleum supplies daily and take timely decisions to manage any potential impact of ongoing regional tensions