ISLAMABAD: Pakistan’s Sindh government and the federal government discussed energy conservation measures amid a sharp rise in global oil prices on Sunday, the Sindh chief minister’s spokesperson said, as the conflict between Iran, Israel and the US intensifies.
Fuel prices jumped more than 10 percent worldwide this week as oil rose above $90 a barrel, the highest in years. Pakistan on Friday increased petrol and diesel prices by Rs55 ($0.20) per liter each, as key energy shipping routes such as the Strait of Hormuz remain disrupted.
Finance Minister Muhammad Aurangzeb and Petroleum Minister Ali Pervaiz Malik met Sindh Chief Minister Murad Ali Shah and other senior members of the Sindh government in Karachi. Participants reviewed the impact of escalating tensions in Iran on Pakistan’s energy supplies and the overall economic situation of the country.
Information Minister Attaullah Tarar said on Saturday that the prime minister has asked his administration to formulate a strategy for fuel conservation and austerity in government affairs within 48 hours.
“The Sindh chief minister and federal ministers discussed emergency conservation measures to deal with a potential energy crisis,” the chief minister’s spokesperson said in a statement.
As per the statement, the federal government informed the meeting that crude oil prices could reach as high as $120 per barrel if the Middle East conflict intensifies.
Aurangzeb said the federal government is closely monitoring global energy markets, adding that Islamabad is preparing alternative plans to manage the financial impact of rising oil prices.
The federal government informed participants of the meeting that three petrol cargo ships are expected to arrive in Pakistan by Monday.
Malik revealed that Qatar’s move to declare force majeure on gas exports this week could disrupt LNG supplies.
“Aurangzeb said Pakistan’s monthly oil import bill could rise to $600 million,” the statement said.
He said a joint dashboard is being developed with provinces to monitor fuel reserves, while both sides decided to increase coordination to prevent hoarding of petroleum products.
“Federal ministers said diplomatic contacts are underway with Saudi Arabia, Oman, and the UAE for alternative fuel supplies,” the statement said.
“Efforts are also being made to ensure oil supplies through routes other than the Strait of Hormuz, they added.”
Meanwhile, Malik said Pakistan will request relief from the International Monetary Fund regarding the petroleum levy, as it holds review talks over its External Fund Facility (EFF) program.
The federal government’s delegation also included senior officials of the Oil and Gas Regulatory Authority, Sui Southern Gas Company and the Petroleum Division.
