Govt to absorb potential hike in fuel prices, says petroleum minister

• Govt ensuring uninterrupted fuel supply: minister.
• Malik suggests Pakistan brace for a “Test match”.
• Says no clear end in sight to Middle East conflict.
  

Petroleum Minister Ali Pervaiz Malik on Tuesday said that the government has decided to absorb any potential fluctuation in fuel prices, hinting at no immediate significant changes in the prices.

The federal government, on March 6, announced a sharp increase of Rs55 per litre in the price of petrol and diesel each, following global oil supply disruption from the ongoing war in the Middle East.

At the time, the petroleum minister said that the government would reduce prices promptly once the situation improved.

Speaking today on Geo News programme ‘Capital Talk’ today, Malik said that Prime Minister Shehbaz Sharif decided that he would make every effort to buffer any potential increase in petroleum prices.

“I think there will be no significant in this [prices] in reasonable time, as the government has decided to absorb them to prevent difficulties for the public,” he added.

While acknowledging the increased burden on the public due to the hike, the minister said the government was ensuring an uninterrupted supply of petroleum products across the country.

The minister suggested the country brace for a “Test match”, noting that the Middle East conflict had no clear end in sight.

“You will have to try to extend your reserves and maintain your supply line,” he said.

However, he indicated that prices were unlikely to shift drastically following remarks by US President Donald Trump on the Iran conflict and the G7’s discussions on potentially releasing some of their strategic oil reserves.

“While nothing can be said for certain, it appears at this time that we will not see significant price changes,” he added.

Malik’s remarks on the government absorbing fuel price fluctuations come just a day after PM Shehbaz Sharif unveiled an austerity and fuel-saving plan.

Addressing the nation on Monday, the prime minister said the measures were necessary to deal with the prevailing global fuel crisis triggered by the ongoing US-Israel-Iran conflict.

“The entire region is currently in a state of war,” the premier said, adding that Pakistan was making every effort through diplomatic channels to help resolve the situation.

PM Shehbaz then announced that both the federal and provincial governments would adopt austerity and simplicity to reduce expenditures and conserve energy during the challenging economic situation.

The measures included cutting government expenditures, reducing the working week to four days, and reducing non-essential movement.

PM Shehbaz also announced that members of the federal cabinet, advisers, and special assistants would not draw salaries for the next two months, while members of parliament would face a 25% salary cut during the same period.