In a bid to conserve fuel due to escalating geopolitical tensions in the Middle East, the federal government is considering a nationwide work-from-home policy for educational institutions.
The proposal, discussed during a high-level Ministry of Finance meeting yesterday, serves as a precautionary measure to save fuel as the closure of the Strait of Hormuz threatens to disrupt Pakistan’s petroleum supply chain.
The Strait of Hormuz is a critical global chokepoint through which approximately 98% of Pakistan’s oil imports pass. With the route currently inaccessible due to regional conflicts, the nation faces an unprecedented logistical challenge in importing its energy source.
28 Days of Fuel Reserves
According to Muhammad Auranzeb, Pakistan currently holds enough petroleum reserves to last for 28 days.
The government is actively exploring alternative supply routes to bypass the Strait of Hormuz. Finance Minister Muhammad Aurangzeb said that if the Strait of Hormuz remains closed for 10 to 12 days, Pakistan may consider importing crude oil directly from Saudi Arabia via the Red Sea.
Saudi Arabia is already developing this alternative Red Sea route to maintain supply lines to major buyers such as China. If the crisis persists, Pakistan is expected to be included on the preferred list of nations using this new Red Sea channel.
Impending Price Shock and Policy Shifts
Pakistan imports Arab Light crude from Saudi Arabia. Prices for Arab Light have recently skyrocketed to $81 per barrel. For context, during the last domestic fuel price revision on March 1, which set petrol at Rs. 266 per litre, the Light crude price was $68 per barrel.
This massive jump in international crude prices guarantees a severe price shock for Pakistani consumers in the coming weekend. We said this weekend, because the Petroleum Ministry is planning to shift to a weekly price revision mechanism.
In this regard, we reached out to Rabia, Public Relations Officer at the Petroleum Ministry, to confirm when the government might approve the weekly pricing system. So far, she has not yet responded to our request for comment, we’ll update this story if she gives us a response.
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تبصرے بند ہیں.