Will petrol be available in Dec? Senate raises concerns over fuel supply

Government denies fuel supply problems

Minister of State for Finance and Revenue Bilal Azhar Kayani told the Senate that Pakistan was not facing a fuel supply problem. He said more than 10 million people were benefiting from the government’s targeted fuel subsidy scheme.

Kayani said Rs1,676 billion had been allocated under the petroleum levy for the current financial year. He added that targeted relief was being provided to motorcyclists, rickshaw and loader operators, and small car users amid rising petroleum costs linked to regional conflicts.

Finance Minister Muhammad Aurangzeb had also said the previous week that Pakistan had secured enough energy supplies to last through November. However, senators questioned what arrangements were in place to ensure supplies beyond that period.

Sherry Rehman demands December supply plan

Pakistan Peoples Party (PPP) Senator Sherry Rehman asked the government whether petrol would remain available in December. She also questioned whether fuel rationing was being considered and demanded that Parliament be briefed on emergency measures and supply plans.

“What is the government’s plan for the availability of petroleum products? Will there be rationing? Members of the Parliament have concerns whether petrol will be available till December,” she said.

Rehman said renewed attacks on Iran and growing tensions in West Asia had increased uncertainty over Pakistan’s fuel supplies. She warned that any disruption could affect energy security, economic stability and the daily lives of ordinary people.

“These are not minor concerns.”

LPG imports raise further concerns

Rehman also warned that a disruption in liquefied petroleum gas (LPG) supplies could affect households and businesses across Pakistan. She said the country imported nearly 70 per cent of its LPG needs, while local production met only about 30 per cent.

According to Rehman, Pakistan received five LPG cargoes last year, but only two were expected this year. She called on the government to present a clear supply plan to Parliament to address the risk of shortages.

Senate Opposition Leader Raja Nasir Abbas also warned that a wider war affecting major energy routes could worsen Pakistan’s energy crisis. He linked the international situation to domestic shortages, saying Punjab was already facing a flour shortage while LPG supplies were also under pressure.

Carbon levy faces criticism

Rehman, who chairs the Senate Standing Committee on Climate Change, questioned how revenue collected through the carbon levy on petroleum products was being used. She alleged that the money was not being directed towards environmental protection projects.

“Yesterday, during the meeting of the Senate Standing Committee on Climate Change, the finance additional secretary acknowledged that the carbon levy is not being spent on environmental projects. A levy is not a tax; it goes straight into the Federal Consolidated Fund where there is no ring-fencing for spending on climate action,” she said.

“The levy is being absorbed into general federal receipts instead of being earmarked for climate resilience despite severe and devastating floods facing all provinces,” she alleged. “The federal government continues to collect this revenue through the petroleum levy, and the money goes into the Federal Consolidated Fund; it cuts through all the provinces. There should not be a carbon levy in the next budget, unless it is restructured as a carbon tax that is ring-fenced for mitigation and climate action. There has to be accountability for every rupee collected.”

“When an item is called a carbon levy, it is to be ring-fenced and then disbursed in consultation with the climate ministry,” she asserted.

The government says fuel supplies are stable, but senators want clear answers about December and the months ahead. Pakistan’s reliance on imported energy makes regional conflict a serious concern, while uncertainty over LPG supplies could add to pressure on households.

The government needs to explain its supply arrangements and emergency plans clearly. Transparency over petroleum levies is also important to ensure that money collected for climate-related purposes is used as intended.

Also read: Pakistan inflation rises as flour, chicken and LPG prices climb