The federal government of Pakistan is actively formulating a relief package aimed at easing the financial strain on motorcycle riders and rickshaw drivers, who have been severely impacted by the recent steep rise in petrol prices. This initiative comes in response to growing concerns over the affordability of fuel for low-income commuters, a group that heavily relies on petrol for their daily livelihoods.
During a detailed briefing held on Monday with the Senate Standing Committee on Petroleum, Secretary Petroleum Hamed Yaqoob Sheikh outlined the government’s ongoing efforts to introduce targeted support for these vulnerable transport sectors. He emphasized that the price hike, although burdensome, was primarily intended to curb fuel hoarding and ensure the uninterrupted import and distribution of petroleum products throughout the country.
The committee was informed that the increase in petroleum prices has not resulted in windfall profits for oil marketing companies. Instead, it has played a crucial role in stabilizing the supply chain amid challenging global conditions. Secretary Sheikh highlighted the geopolitical tensions in the Middle East, which have disrupted traditional supply routes, noting that approximately 70 percent of Pakistan’s oil imports originate from this volatile region. This dependency underscores the delicate balance the government must maintain to secure energy resources.
In terms of current fuel reserves, the briefing provided a comprehensive overview: petrol stocks are sufficient to meet the country’s demand for the next 27 days, while diesel reserves can sustain consumption for 21 days. Crude oil supplies are available for 11 days, and reserves of liquefied petroleum gas (LPG) and liquefied natural gas (LNG) are adequate for about nine days. Additionally, jet fuel (JP-1) stocks are maintained for a two-week period, ensuring that aviation needs remain covered during this period of uncertainty.
During the session, Senator Hidayatullah raised questions regarding the rationale behind the petroleum price increases implemented after March 7. Officials from the Oil and Gas Regulatory Authority (OGRA) responded by detailing the significant price escalations: diesel prices have surged by nearly 100 percent, while petrol prices have climbed by approximately 70 percent since that date. These hikes reflect the broader global trends and supply challenges faced by the country.
Secretary Sheikh also mentioned that the government has introduced various cost-saving measures aimed at generating fiscal space, which will be redirected to provide subsidies and financial relief to the general public, particularly those most affected by the fuel price surge. This approach seeks to balance the need for market stability with the socio-economic realities faced by ordinary citizens.
It is important to note that earlier, the government raised the price of kerosene oil by Rs39.20 per litre, while petrol prices were kept steady for the week ending March 20. This adjustment has made kerosene—the fuel often referred to as the ‘poor man’s energy source’—the most expensive consumer fuel product in the market at Rs358 per litre. Since March 7, kerosene has experienced the steepest price increase among all fuel types, reflecting shifts in global energy pricing and local market dynamics.
Furthermore, the Ministry of Energy has confirmed that the government will disburse Rs23 billion as a price differential subsidy to oil marketing companies. This subsidy is designed to absorb the impact of rising international fuel prices, enabling the government to maintain petrol prices at their current levels domestically despite global market pressures. This financial intervention underscores the administration’s commitment to shielding consumers from abrupt price shocks while managing the country’s energy security.
