Shehbaz ministers warn of energy crisis as Pakistan fuel prices surge
Pakistan’s Energy Crisis Intensifies Amid Global Oil Price Surge
Pakistan is grappling with a significant energy crisis as global oil prices soar due to disruptions in key Gulf shipping routes, particularly the Strait of Hormuz and Bab El-Mandeb. Prime Minister Shehbaz Sharif’s government is under increasing pressure to manage rising fuel costs while attempting to shield consumers from the economic fallout.
Climate Change Minister Musadik Malik announced that the government is implementing a fuel relief scheme to mitigate the impact on consumers. Under this program, motorcyclists can receive subsidized petrol for up to five litres per week, while car owners are eligible for relief on up to 10 litres every 10 days. Malik acknowledged that this assistance would not completely offset the price hikes but represents the maximum burden the economy can currently handle.
Energy Minister Awais Leghari highlighted the precarious supply situation, stating that Pakistan has managed to keep its power plants operational by maximizing domestic energy resources. He warned that without additional domestic gas supplies, the country could face increased load shedding. Reliance on furnace oil or imported Regasified Liquefied Natural Gas (RLNG) could have raised consumer tariffs by approximately PKR 10.6 billion.
In response to the escalating crisis, the government is expanding its fuel relief program. A National Steering Committee on Fuel Subsidy, led by Deputy Prime Minister Ishaq Dar, has mandated that payments to fuel stations be processed within 24 hours. The scheme, initially launched in Islamabad, is now being rolled out nationwide.