PM for relieff

2026-03-14 - 23:23

PRIME Minister Shehbaz Sharif has lived up to his commitment by not revising the domestic prices of oil upward during the latest weekly review. According to a statement issued by the Prime Minister’s Office (PMO), PM Shehbaz was quoted as saying that despite an uptick in the global oil market prices were not being increased to reduce the burden on the common man. He said that as per his “promise”, he would provide relief to the people as much as possible. There is no doubt that the international oil market was volatile due to supply disruptions caused by the Iranian decision to block the Strait of Hormuz in response to invasion of the country by the United States and Israel. The United States has miserably failed to fulfil its pledges regarding provision of safety cover for vessels transiting through the strategic Hormuz. The war itself was a major factor to push the oil prices up but supply constraints caused by the closure of Hormuz and the accompanying hike in freight and insurance costs have complicated the situation further. President Donald Trump, in a bid to ease supply concerns, has issued waivers for export of Russian oil and it is to be seen how the decision impacts the global prices of the commodity (besides serving as a dis-incentive for Moscow to make efforts for an end to the war as its continuation means an increase in the sale of Russian oil). At the same time, 32 countries forming the International Energy Agency have unanimously agreed to make 400 million barrels of oil from their emergency reserves available to the market in response to the war in the Middle East. According to the US Department of Energy early deliveries of oil from the strategic reserves should reach the market by the end of the week. However, even then the prices could escalate further if the two sides went ahead with their threats to strike oil facilities in the region. The future scenario is ominous as the United States claimed to have “totally obliterated” every military target on Iran’s Kharg Island — an Iranian island critical for its oil exports. The US has dispatched more ships and marines to the region for carrying out amphibious raids including attempts to occupy the strategic island, which could prompt a harsher response from Iran as far as oil and related facilities in the region are concerned. In this backdrop, the Government of Pakistan has done well by initiating a series of measures to ensure regular supply of this essential commodity and its conservation. As pointed out by the Prime Minister, due to the efforts of the diplomatic and economic teams, adequate quantities of crude oil were available for the country’s needs and the situation might improve further because of arrangements made with friendly countries for continuity of supplies. As for the decision not to pass on the burden to consumers for the near future, it is understandable as the Government has already overburdened people of Pakistan and that too when the price impact was not felt by the country. The Government has a cushion to absorb future shocks and it must do so as people have not yet been able to digest the first shock. In a related development, the Pakistan Petroleum Dealers Association (PPDA) on Friday warned that petrol pumps across the country could shut indefinitely from 27 March if the government fails to increase dealers’ margins. Ironically, taking advantage of the crisis situation, it is demanding that the margins should be increased from the existing Rs 8 per litre to Rs 25 per litre, a hefty increase of Rs 17 per litre. This is sheer blackmailing and must be dealt with as such.