ISLAMABAD: The federal government is considering a subsidised fuel scheme for motorcyclists and rickshaw drivers to ease the burden of rising oil prices, following a similar initiative by the Khyber Pakhtunkhwa government.
Petroleum Secretary Hamed Yaqoob Sheikh informed the Senate Standing Committee on Petroleum that a relief package is being finalised to support low-income commuters who rely heavily on motorcycles and rickshaws. He said the government is taking steps aimed at mitigating the impact of recent fuel price hikes on the public.
The development comes in the wake of significant increases in petroleum prices driven by global market volatility. Earlier this week, petrol prices surged by Rs55 per litre, while kerosene oil saw an increase of Rs40 per litre. Meanwhile, the government approved Rs23 billion support for oil marketing companies, keeping petrol and high-speed diesel prices unchanged for the current week.
The committee was informed that Pakistan currently holds petrol reserves for 27 days and diesel for 21 days. Stocks of jet fuel (JP1) are sufficient for 14 days, crude oil for 11 days, and liquefied natural gas (LNG) for nine days.
Mr Sheikh highlighted that around 70 per cent of Pakistan’s petrol imports originate from the Middle East. He noted that global disruptions, particularly due to the Strait of Hormuz blockade, have sharply increased fuel prices — with diesel rising from $88 to $187 per barrel and petrol from $74 to $130.
During the meeting, concerns were raised by committee members regarding the transfer of benefits to oil marketing companies. However, the petroleum secretary clarified that price adjustments were necessary to discourage hoarding and ensure continued imports, adding that oil companies were also affected by the volatile market conditions.
Officials from the Oil and Gas Regulatory Authority (OGRA) told the committee that diesel prices have risen by 100 per cent and petrol by 70 per cent compared to pre-March 7 levels.
The committee was further informed of growing energy supply challenges. LNG imports from Qatar have remained suspended since March 2, with only two out of eight scheduled cargoes arriving in March. The arrival of six expected cargoes in April remains uncertain.
As a result, gas supply to key sectors has been curtailed. Supply to the power sector has dropped from 300 million cubic feet per day (mmcfd) to 130 mmcfd, while a fertiliser plant has faced a 50 per cent reduction.
Officials warned that LNG may not be available in the country after April 14, posing serious challenges for electricity generation. While domestic consumers will be prioritised for gas supply, alternative arrangements — including spot LNG purchases from Azerbaijan’s state oil company — are being considered. However, such imports are expected to be significantly more expensive, potentially driving up electricity tariffs in the coming months.
Story by Khaleeq Kiani
