Pakistan 'weighs weekly fuel price' review amid Middle East tensions

ISLAMABAD: Amid escalating tensions in Middle East region after Israel-US attacked Iran, Pakistan authorities are considering shifting to a weekly review mechanism for petroleum product prices, ARY News reported on Thursday, citing sources.

Various proposals are under discussion regarding the determination of fuel prices on a weekly basis following closure of Strait of Hormuz. Pakistan govt officials are also consulting on a pricing model similar to the one adopted during the Covid-19 period.

Sources indicate that the primary objective behind moving to weekly price adjustments is to prevent hoarding by dealers, particularly in anticipation of potential price increases. Concerns have been raised that fuel retailers may stockpile supplies if they expect a significant upward revision in prices.

If the prevailing tensions persist, petrol prices could rise by up to Rs20 per litre, while diesel may see an increase of as much as Rs45 per litre, sources added.

Earlier, Finance Minister Muhammad Aurangzeb told the Senate Committee for Finance that Pakistan has diesel and petrol for 28 days.

In a briefing to the Senate body session chaired by Senator Salim Mandviwala, on the economic situation of the country, Aurangzeb said that considering conservation of petroleum as the country did during the Covid pandemic period.

Finance Minister vowed optimum use of the local reserves of oil and gas. “There is no shortage of oil and gas in the country,” he said. “The people should also follow the energy conservation”.

Minister said that the prime minister has constituted a special committee for monitoring of petroleum products, which is working on daily basis. He said that the country has petroleum reserves for upto the end of March. “Key decisions will be taken urgently,” he said.

Aurangzeb said that the supply of the petroleum products will be regulated while steps will be taken for the conservation of energy. “If the regional tensions continued, we would take steps to tackles the impact of tensions,” he added.