Finance minister unveils fuel conservation plan as Strait of Hormuz closure triggers global oil crisis
Minister for Finance and Revenue, Senator Muhammad Aurangzeb. Photo: APP
Finance Minister Muhammad Aurangzeb on Wednesday formally announced to introduce energy conservation measures to deal with disruption in import of fuels, as the government considers closing higher education institutions and weekly setting fuel prices to deal with the evolving situation.
However, the finance minister said that the country has sufficient stocks of fuels for this month in addition to 10 days’ equal crude oil reserves, emphasising there was no cause for immediate concern.
“We are introducing energy conservation measures to curtail demand but there would not be any rationing of these products,” said the finance minister in a policy statement during a meeting of the Senate Standing Committee on Finance. PPP’s Senator Saleem Mandviwalla chaired the meeting.
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“We are introducing the energy conservation measures and would have to self-discipline without creating noise to curtail the demand,” said the finance minister while ruling out the possibility of any rationing of these products.
The minister did not reveal those measures, but officials said that it has been proposed to shift all the higher education institutions to remote learning by closing the facilities to save fuel. Another measure will be to set the petrol and diesel prices on a weekly basis by ending the current fortnightly price determination.
The final set of measures has not yet been approved by the committee, as it would again deliberate on these energy-saving measures tomorrow (Thursday). Prime Minister Shehbaz Sharif is expected to take a decision on Friday in the light of recommendations of the committee, said the officials.
وزیر خزانہ محمد اورنگزیب کی پارلیمنٹ میں میڈیا سے گفتگو
پیٹرولیم مصنوعات کی دستیابی کا روزانہ کی بنیاد پر جائزہ لیا جا رہا ہے۔وزیر خزانہ
پیٹرولیم مصنوعات کی قیمتوں کا روزانہ جائزہ لیا جا رہا ہے وزیر خزانہ
مارچ کے مہینے کے لیے پیٹرولیم مصنوعات کی دستیابی موجود ہے وزیر خزانہ… pic.twitter.com/fQfU01w9z8Due to the “evolving situation,” the petrol committee may have to take decisions on an hourly basis, and PM Shehbaz has empowered the petrol committee to take decisions in real time, said Aurangzeb.
The minister further added that Pakistan has about 28 days’ equal stocks of petrol and diesel and 10 days of crude oil. There are also LPG stocks equal to 15 days of the country’s requirements, and we are closely monitoring the situation, said Aurangzeb, who is also the Chairman of the prime minister’s Committee to Monitor Petrol Prices in the wake of the emerging situation in the region, which was constituted by the prime minister and met for the third time on Wednesday.
He, however, said that the LNG cargoes have stuck up from Qatar and the government was closely monitoring the situation.
According to a handout issued by the finance ministry, the petrol committee members reviewed energy conservation measures as part of broader contingency planning aimed at managing demand efficiently while maintaining orderly market conditions.
The committee emphasised that while supply conditions remain stable, prudent energy use and conservation at all levels would help strengthen national preparedness should international uncertainties persist, said the finance ministry.
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The committee was informed about ongoing diplomatic and commercial engagement with friendly countries and suppliers in the region to secure additional crude and petroleum supplies where necessary. Pakistan has requested Saudi Arabia to provide fuel from alternate channels to avoid blockage at the Strait of Hormuz.
The committee also noted efforts underway to diversify procurement options through regional energy hubs, including potential arrangements through ports in the Red Sea and the Gulf region, in order to maintain the continuity of refinery operations and ensure supply resilience.
“The committee noted that the international energy environment remains fluid, particularly given the uncertainty surrounding the Strait of Hormuz and its implications for global energy trade,” said the finance ministry.
The committee was informed that disruptions in regional shipping routes could affect global LNG logistics. LPG inflows through cross-border channels are also being closely monitored to ensure uninterrupted domestic availability.
The committee also stressed the importance of preventing hoarding, diversion, or smuggling of petroleum products, particularly in times of international volatility.
Legislative agenda
After arguments between Muhammad Aurangzeb and PML-N’s Senator Anusha Rahman about the need to end “abuse of power” by the Securities and Exchange Commission of Pakistan, the Standing Committee approved Anusha’s bill with certain amendments.
Senator Anusha Rahman highlighted concerns regarding governance and accountability within SECP, including the retrospective increase of salaries and emoluments of the commissioners and the composition of the SECP policy board.
The committee approved amendments in the SECP Act to reduce the number of private members on the SECP board from six to four and increase the government members from five to seven, despite strong resistance by finance minister.
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Senator Anusha said that a former SECP Commissioner first took Rs7 million of Islamabad Club membership fee and only deposited back the money in the exchequer to become eligible for reappointment. She said that such abuse of power was possible only because the SECP policy board was complacent.
She also criticised the secretary finance, Imdad Ullah Bosal, and the secretary law for remaining silent on the abuse of power by the SECP. Both secretaries are members of the board.
The finance minister argued that the abuse of power by a few individuals should not be a reason for curtailing institutional autonomy.