Disruptions to key Gulf energy routes have deepened Pakistan’s fuel and power crisis, with ministers warning that prolonged disruption to the Strait of Hormuz and Bab el-Mandeb could worsen shortages and push energy costs higher.
Energy Minister Sardar Awais Ahmad Khan Leghari and Climate Change Minister Musadik Malik said on Tuesday evening that the government was relying on domestic energy resources and targeted fuel subsidies to contain the impact of soaring international oil prices.
Malik noted that crude oil had again crossed $100 a barrel as the US/Israel-Iran war continued, making it increasingly difficult for the government to absorb higher import costs.
He described the Prime Minister’s Fuel Relief Scheme as an effort to cushion vulnerable consumers from the price shock.
Under the scheme, motorcyclists will receive five litres of subsidised petrol a week, while car owners will qualify for 10 litres every 10 days.
The government is providing Rs100 per litre in relief against a combined petroleum and carbon levy of Rs85, Malik added.
Meanwhile, Leghari reported that Pakistan had kept its power plants operating despite disruptions to RLNG supplies by maximising the use of domestic energy resources.
He said the move had helped the power sector avoid buying expensive spot RLNG, with prices reaching $23.25 per million British thermal units (MMBtu).
Without additional domestic gas supplies, Pakistan could have faced another hour of load-shedding, while greater reliance on furnace oil or imported RLNG would have added about Rs10.6 billion to consumer tariffs, Leghari maintained.
Separately, the National Steering Committee on Fuel Subsidy, chaired by Deputy Prime Minister Ishaq Dar, ordered fuel-station payments under the scheme to be processed within 24 hours.
The scheme, which was piloted in Islamabad, will be rolled out nationwide from midnight between Wednesday and Thursday.
Ministers also dismissed reports of a new “smart lockdown”.
Sources, however, said the possibility of such measures was discussed during Prime Minister Shehbaz Sharif’s meeting with Nawaz Sharif in Murree. There was no official confirmation of the meeting.
