Federal Finance Minister Muhammad Aurangzeb. Photo: File
ISLAMABAD:
A special government committee monitoring petroleum supplies on Thursday discussed introducing a four-day workweek with reduced working hours and shifting educational institutions to virtual learning as part of possible energy conservation measures, amid supply uncertainties linked to disruptions in the Strait of Hormuz.
Officials said the committee examined the proposal as it remained divided over how far to go in rolling out conservation steps.
Some members cautioned that measures such as partially closing offices and institutions could fan public anxiety and trigger panic buying, while others argued that delaying action could quickly eat into national fuel reserves, leaving little room for manoeuvre if supply pressures deepen.
The meeting, chaired by Finance Minister Muhammad Aurangzeb, reviewed multiple proposals aimed at reducing the consumption of petrol, diesel and Liquefied Natural Gas (LNG), whose prices have surged following supply bottlenecks and escalating geopolitical tensions.
Despite differences over the pace of action, committee members broadly agreed that the government would not be able to cushion the impact of rising global energy prices and would have to pass the full burden on to domestic consumers.
The officials said that the majority of the members of the committee were of the view that the government should immediately trigger conservation measures on the lines of COVID-19, but short of a lockdown of the markets. The proponents argued that any delay in taking these measures would reduce the stocks of the fuel.
However, the minority warned against taking aggressive steps that could unnerve the public and cause panic buying of these products.
The committee discussed about a dozen conservation measures, some of which did not have the details of how much savings can be made by rolling out these steps, said the officials.
The meeting took place the same day Prime Minister Shehbaz Sharif appointed seasoned bureaucrat Hamed Yaqub Sheikh as the new petroleum secretary. Sheikh has previously served as the federal secretary finance, and his last assignment was the secretary health.
Officials said the proposals would now be presented to Prime Minister Shehbaz Sharif on Friday (today), after which a summary could be placed before the Economic Coordination Committee (ECC) of the cabinet for approval.
Four-day week, online schooling
The officials said that the committee discussed the option of shifting to four days a week with reduced working hours. There was also a proposal to close all educational institutions and shift to a virtual mode of learning, like during the Covid-19 period.
At this stage, there was no serious proposal to bring the public transport to a halt, said one of the meeting participants.
Another proposal suggested reducing the fuel allowances of government departments in order to preserve national stocks, which are currently estimated to cover not more than 25 days.
Sources said the finance minister also proposed adopting a cascading approach instead of implementing all conservation measures abruptly.
Meanwhile, officials said the government was also in discussions with Saudi Arabia, Oman and the United Arab Emirates to secure new contracts or maintain existing supply arrangements through alternative routes.
Officials from Pakistan State Oil, Pak Arab Refinery Company and Pakistan Refinery Limited were also scheduled to hold meetings with their counterparts in Saudi Arabia as part of efforts to replenish stocks.
However, the committee was informed that even if Pakistan secures new deals, they may not be economically viable. Members were told that one LNG cargo may now cost around $70 million compared with the pre-war price of roughly $30 million.
Govt assures adequate fuel stocks
A handout issued by the Ministry of Finance said the committee reviewed multiple supply and pricing scenarios to ensure preparedness under different contingencies while maintaining stability in domestic energy supplies.
In this context, “the committee noted that war premium dynamics and intensified competition for energy cargoes, particularly in Asian markets could raise external account pressures if volatility persists,” stated the ministry.
It added the members discussed contingency options to manage demand efficiently if disruptions linger, while protecting priority sectors and maintaining orderly conditions.
In line with broader preparedness planning, the committee examined a phased menu of fuel conservation measures drawing on institutional protocols implemented during prior national emergencies to support demand management if needed, while carefully calibrating communications to avoid any perception of undue alarm, said the finance ministry.
It was further decided that the committee will finalise its recommendations by Friday and submit them to the prime minister, together with a comprehensive implementation plan covering supply assurance, enforcement, pricing, governance mechanisms, and conservation measures, as appropriate.
Members were briefed that national fuel reserves remained at comfortable levels, with sufficient cover available for key products, and that there is no immediate cause for concern regarding the availability of petroleum products.
The committee, however, noted that the situation remains fluid and uncertain, requiring sustained vigilance and prudent planning as global supply chains and shipping routes face heightened risk and cost pressures, according to the finance ministry.
Updates were shared on diplomatic and commercial engagements being pursued with friendly countries and partner suppliers to secure additional crude and refined product volumes through alternate routes and ports, including options outside high-risk corridors.
To safeguard orderly market conditions, the committee discussed measures to deter hoarding, illegal storage, and diversion, including coordinated enforcement actions by provincial administrations in close collaboration with Ogra and relevant agencies.
The committee emphasised that preventing outward smuggling and ensuring uninterrupted domestic distribution will remain a top operational priority, and that real-time field intelligence and strict action against violations will be maintained.
In his remarks, the finance minister emphasised that the government’s foremost objective is to ensure the uninterrupted availability of petroleum products across the country, and that availability will remain the primary driver of all policy and operational decisions.
Aurangzeb stressed that the government is managing the situation responsibly through a structured governance mechanism, with daily monitoring, scenario planning, and coordinated decision-making.
The finance minister noted that where international price movements create unavoidable pressures, the government will respond through established and predictable mechanisms, with the aim of avoiding distortions and preserving market stability.
Govt orders inspections to curb hoarding
Separately, the federal government directed provincial administrations to conduct physical inspections and monitoring of retail petrol stations through deputy commissioners to prevent hoarding of petroleum products and curb profiteering.
The directive came as the government assured the public that Pakistan currently has sufficient petroleum stocks to meet national demand.
The Oil and Gas Regulatory Authority (Ogra) said the country’s reserves remain comfortable and within prescribed limits, urging consumers to avoid panic buying as authorities continue to monitor the fuel supply chain closely.
Officials said the monitoring measures were taken after reports suggested that some elements might attempt to hoard petroleum products to exploit the ongoing geopolitical situation.
Ogra warned that strict action would be taken against any individual or entity involved in illegal storage of petroleum products outside licensed oil depots or authorised retail outlets. Any premises found storing fuel illegally would be sealed.
The regulator also said its inspection teams were actively monitoring depots and retail stations across the country to ensure uninterrupted supply and prevent malpractice.
Provincial chief secretaries have been instructed to direct deputy commissioners to conduct inspections within their jurisdictions.
Officials say Pakistan currently holds petroleum stocks sufficient to meet approximately 28 days of national consumption, though two crude cargoes have reportedly been delayed due to the Hormuz disruption.
Sources said Saudi Aramco and the UAE’s ADNOC are expected to help supply oil shipments through alternate routes, while one refinery has already received shipments through the Red Sea and additional vessels are on their way.
The government is also considering several contingency measures to stabilise the market, including shifting the petroleum price review from a fortnightly to a weekly mechanism, providing financial cover to oil marketing companies to support imports and implementing energy conservation measures such as encouraging work-from-home arrangements.
Latest estimates suggest petrol and diesel prices could increase by Rs25-50 per litre if weekly pricing revisions take effect from March 8.
Industry stakeholders alarmed
Despite official assurances, industry stakeholders have raised concerns about supply disruptions.
The Oil Marketing Association of Pakistan (OMAP) warned Ogra that local refineries had deviated from previously agreed supply commitments and introduced an allocation system that was reducing deliveries to oil marketing companies.
According to the association, many companies had planned their supply strategies based on earlier commitments and therefore did not arrange import cargoes.
OMAP said that although refineries reported holding sufficient stocks, they were supplying significantly reduced quantities, causing the mandatory 21-day stock cover maintained by oil marketing companies to decline steadily.
The association cautioned that if the situation continued, stock levels could soon reach critical levels, and responsibility for any supply shortages would rest with both refineries and the regulator.
Petroleum dealers also raised an alarm over declining deliveries. Leaders of the Pakistan Petroleum Dealers Association said diesel supplies had dropped sharply, while petrol deliveries had also been reduced significantly.
They warned that if the supply situation did not improve, petrol pumps could begin shutting down within days.
Dealers urged the government to focus inspections on supply depots rather than retail pumps and called for immediate restoration of deliveries. They also requested that industry stakeholders be taken into confidence in view of the regional crisis.
A separate letter from the All Pakistan Petrol Pump Owners Association to Prime Minister Shehbaz Sharif warned that oil marketing companies had reportedly introduced a quota system amid the Middle East crisis, restricting supplies to fuel stations.
The association said such limits could lead to shortages at retail outlets if corrective action was not taken quickly.
Authorities, however, insist that the country’s fuel supply remains stable for now. Analysts say the situation will largely depend on how long regional tensions continue and whether critical oil shipping routes remain disrupted.
