ISLAMABAD:

Prime Minister Shehbaz Sharif said on Friday night, the eve of Eidul Fitr, that he had rejected advice to further raise fuel prices and the federal government would absorb the burden itself.

The government was expected to absorb the impact of an increase in oil prices of up to Rs49 per litre amid a sharp surge driven by tensions in the Gulf region.

According to calculations, the price of high-speed diesel had increased by Rs49 per litre, while diesel prices had risen by Rs29 per litre. However, the government may absorb this impact through price differential claims.

During the last week, the federal government hiked the prices of kerosene oil and light diesel oil (LDO). However, it decided to freeze petrol and high-speed diesel prices by maintaining the petroleum levy and providing a subsidy to absorb rising costs.

Two weeks ago, the government sharply increased diesel and petrol prices by Rs55 per litre or 20% — due to the ongoing US-Israel and Iran war, which has disrupted supply chains and pushed crude oil prices to two years’ highest level.

The increase in petrol prices was more than the surge in the international market, as the government chose to collect more money than required from motorcyclists and car owners to subsidise the use of diesel, mostly by the public transport and the agriculture sector.

However, Prime Minister Shehbaz Sharif decided not to increase the prices of petroleum products last week, honouring his promise to the public despite a further rise in international oil prices.

The Committee to Monitor Petrol Prices was informed on Monday that the country had adequate fuel availability for March and coverage was available until mid-April based on current cargo planning and supply arrangements, with efforts underway to extend it further towards the end of next month.

The committee members undertook a comprehensive review of petroleum product stock positions across the country and were briefed in detail on the current national inventory of crude oil and refined petroleum products, ongoing import arrangements and supply chain logistics.

Earlier, Petroleum Secretary Hamed Yaqoob Sheikh said the country currently had diesel reserves sufficient for 21 days and petrol stocks for 27 days.

The petroleum secretary briefed the Senate Standing Committee on Petroleum on the country’s fuel reserves and the impact of rising tensions in the Middle East on global energy supplies.

Sheikh said the country also had liquefied petroleum gas (LPG) reserves for nine days and JP-1 aviation fuel stocks for 14 days. The petroleum secretary said that around 70% of Pakistan’s petroleum supplies came from the Middle East and the ongoing regional tensions had disrupted shipments, with vessel movement currently affected.