Pakistan's federal cabinet has warned that the country faces a mounting energy crisis as Gulf transit routes remain effectively closed and fuel prices spiral, after petrol was raised to PKR 384.34 a litre and high-speed diesel to PKR 415.83.
Prime Minister Shehbaz Sharif's government increased petrol prices by PKR 4.10 a litre and diesel by PKR 6.41 on Tuesday night, the third steep hike in as many days.
Energy Minister Awais Leghari and Climate Change Minister Musadik Malik briefed the cabinet that disruptions in the Strait of Hormuz and Bab-el-Mandeb had worsened existing shortages, with international crude prices once again crossing $100 a barrel, testing the government's ability to absorb the shock, Bol news reported.
Malik said the government was cushioning part of the increase through the Prime Minister's Fuel Relief Scheme, under which motorcyclists receive five litres of subsidised petrol weekly and car owners 10 litres every 10 days.
He said the petroleum levy stands at PKR 80 a litre and the carbon levy at PKR 5, PKR 85 in total, against announced relief of PKR 100 a litre.
Beneficiaries such as delivery riders and low-income car owners could receive PKR 2,000-3,000 a month in relief, he said, conceding the support was insufficient but represented the maximum the economy could bear.
The National Steering Committee on Fuel Subsidy, chaired by Deputy Prime Minister Ishaq Dar, has ordered that payments to fuel stations be cleared within 24 hours and directed provinces to complete district-level outreach.
The scheme, piloted in Islamabad, was to be extended nationwide from midnight Wednesday.
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Leghari said Pakistan had kept power plants running by maximising domestic resources, which supplied 72% of electricity generation in August, with only 28% from imported coal and RLNG.
Disruptions had pushed RLNG spot cargo prices to $23.25 per MMBtu, he said, adding that arranging additional domestic gas averted an extra hour of load shedding and about PKR 10.6 billion in higher consumer tariffs.
Malik and cabinet colleague Tariq Fazal Chaudhry dismissed speculation over a fresh smart lockdown, though Information Minister Atta Tarar has hinted austerity measures could return. Jamaat-i-Islami has threatened nationwide protests next week if prices are not cut.
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