The Pakistan government is considering a series of measures, including a possible smart lockdown, to reduce petroleum consumption as fuel prices have risen sharply amid tensions in West Asia. Prime Minister Shahbaz Sharif held a meeting to review proposals to reduce fuel consumption in the transport sector. Several options involving both government and private sectors are being considered.Ā
Pakistan government again increased the prices of petrol and diesel.
According to a notification issued by the Petroleum Division on Tuesday night, the government has increased the price of petrol by Rs 4.10 per litre and high-speed diesel (HSD) by Rs 6.41 per litre. This brings petrol to Rs 384.34 and high-speed diesel to Rs 415.83 per litre.Ā
Oil prices rise amid warnings of supply disruptions
The hike in petrol and diesel prices comes as top government officials warn of disruptions to oil supplies due to the deteriorating security situation in the Straits of Hormuz and Bab al-Mandeb. Energy Minister Awais Leghari and Climate Change Minister Musadik Malik said on Tuesday that skyrocketing international oil prices are testing the government’s ability to withstand such price shocks.Ā
Government giving subsidy on the purchase of petrol
Malik said the government has tried to absorb some of the price hike through the Prime Minister’s “Fuel Relief Scheme.” Under this scheme, motorcyclists will receive 5 litres of subsidised petrol every week, while car owners will receive 10 litres of subsidised petrol every 10 days, the Dawn newspaper reported.
Leghari cited supply-side issues and said that despite fuel shortages, Pakistan has kept its power plants running by maximising domestic resources. Amid rising fuel prices, the government is exploring options to reduce consumption, including implementing a “smart lockdown,” similar to the one used during the height of the US-Iran war, which then introduced a four-day working week and early market closures.Ā
Information Minister Atta Tarar recently said that austerity measures could be reimposed. In the past, such measures have included early market closures, which the business community has disliked. Musadik Malik, however, dismissed speculation of a “lockdown,” saying no one has discussed a “smart lockdown.” Meanwhile, to cope with the crisis, the government introduced a daily petroleum pricing mechanism in July.Ā
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