Fuel prices could hit Rs1,000/litre if shortage emerges, petroleum minister warns

Minister warns of possible fuel shortage

Petroleum Minister Ali Pervaiz Malik has warned that fuel prices could reach Rs1,000 per litre if a shortage develops in Pakistan. He said the warning comes as global oil markets remain under pressure because of tensions in the Middle East.

Speaking to journalists in Lahore, Malik said petroleum prices had already increased significantly in Pakistan. He also said fuel prices had risen in Europe and the United States as international oil markets faced uncertainty.

Government looks for domestic oil

Malik said attacks on energy infrastructure were unacceptable and the government was working to protect vulnerable sections of society from rising fuel costs. He also said work had started on oil wells and the government expected domestic crude oil discoveries by October.

The minister said increased local oil production could help reduce Pakistan’s dependence on expensive fuel imports. However, the expected discoveries are yet to be confirmed.

Current petrol price stands at Rs389.14

The warning comes as international oil markets face volatility linked to developments in the Middle East. Pakistan’s current petrol price is Rs389.14 per litre, while high-speed diesel is being sold at Rs424.04 per litre.

The government recently reduced petrol by Rs1.65 per litre and high-speed diesel by Rs0.88 per litre. The revised rates were set to remain effective from September 19 to September 21.

Fuel relief scheme gets major changes

The government has also changed the Prime Minister’s Fuel Relief Scheme to provide more flexibility to eligible users. Motorcycles registered from January 1, 2006, are now eligible instead of the previous 2011 cut-off.

The five-litre limit linked to each token for motorcycles, Qingqis and rickshaws has also been removed. Eligible two- and three-wheeler users can receive four tokens each month, with each token providing Rs500 in relief.

"For example, if two litres of petrol cost Rs780, the beneficiary would pay Rs280 after applying the Rs500 relief token," Fatima explained.

SMS charges under the scheme have also been removed. The government says the changes are aimed at making the relief programme easier for eligible citizens to use.

The warning highlights the possible impact of a serious fuel shortage on consumers. At the same time, the government is trying to provide targeted relief while looking for ways to increase domestic oil production.

The actual impact will depend on global oil prices, fuel supplies and the success of local exploration. The relief scheme may help eligible users manage some of the higher fuel costs.

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