Govt weighs fuel conservation steps as oil price risks mount

Pakistani authorities are assessing contingency plans to manage potential fuel supply pressures as escalating tensions in the Middle East threaten to drive global oil prices sharply higher.

A high-level meeting held at the Chief Minister House on Sunday reviewed the country’s petroleum supply situation and discussed emergency fuel conservation measures aimed at extending existing reserves.

The meeting was chaired by Sindh Chief Minister Syed Murad Ali Shah and attended by Federal Finance Minister Muhammad Aurangzeb and Petroleum Minister Ali Pervaiz Malik, along with senior federal and provincial officials.

Participants were briefed that global crude prices could climb to $120 per barrel if the regional conflict intensifies, posing risks for Pakistan’s energy imports.

Officials said such an increase could push the country’s monthly oil import bill to around $600 million, raising concerns about the broader economic impact.

Authorities also discussed possible fuel hoarding at petrol pumps and agreed to strengthen coordination between federal and provincial institutions to prevent artificial shortages in the market.

Officials informed the meeting that three petroleum shipments are expected to reach Pakistan by Monday, which could help maintain near-term supply stability.

The discussion also focused on strategies to reduce fuel consumption through responsible energy use as part of broader crisis preparedness.

Finance Minister Aurangzeb said the federal government was closely monitoring international energy markets and preparing alternative plans to manage the financial fallout of rising oil prices.

Petroleum Minister Malik stressed the importance of conservation measures so existing stocks could last longer if supply disruptions occur.

Officials further noted that Pakistan was exploring alternative supply arrangements through diplomatic engagement with Saudi Arabia, Oman, and the United Arab Emirates, while also examining supply routes beyond the Strait of Hormuz.

According to the petroleum minister, the government may also approach the International Monetary Fund to seek relief in petroleum levy if global prices rise sharply.

Chief Minister Shah said maintaining economic activity while encouraging prudent energy consumption remained the government’s priority, adding that proposals discussed during the meeting would be placed before the provincial cabinet for further consideration.

Officials said federal and provincial authorities would continue close coordination as the regional energy situation evolves.