Pakistan government considers freezing petroleum product prices despite global increases
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- First seen: March 14, 2026 at 12:10 AM UTC
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- Last updated: April 8, 2026 at 06:04 AM UTC
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WE all need this war to end. And we need it to end immediately. Already the impact is being felt around the world, but in Asia in particular. In Pakistan, its real impact will hit if it lingers for a few days more, but the fuel price hike already passed, and those in store, are enough to do more damage than you want to count. Here is a simple exercise. Take the various indices for international fuel prices: Brent, WTI, Dubai crude, and Murban (or Oman crude). Look at their prices over the month of March and you will notice two of them — Dubai and Murban (or Oman) — leaping ahead while the other two — Brent and WTI — climbing less sharply. This is significant because the former two are fuels used across Asia (including Pakistan) while the latter two are used primarily in Western markets. Asia is the hardest-hit region in the world by the oil price and supply disruptions that the war is producing. And across Asia, countries are taking extraordinary steps to manage the fallout. Visuals are now emerging of chaos at pumps in some parts of India and Bangladesh. Japan has authorised a release from its strategic reserves described as their “largest ever”, enough to cover 15 days of consumption. The release is larger than what it authorised after the Fukushima nuclear power plant disaster in 2011, probably the single largest energy shock Japan has ever experienced. Country after country is struggling with a fuel crisis that is only going to intensify in the days ahead. In the Philippines, President Marcos addressed the nation live to declare an “energy emergency” following record-high fuel price hikes that prompted strike calls from around the country. He promised free bus rides for students and schemes to subsidise fuel for taxis, motorcycles and public transport workers. In Thailand, the government is considering reviving an emergency law from the 1970s as fuel stocks run dangerously low and visuals emerge of a crush of buyers at fuel stations around the country as panic buying spreads and fuel stations run out of stock. The law gives sweeping powers to the prime minister “covering the production, sale, transport, possession, stockpiling, export and import of all types of fuel”, according to a report in their local press. “That means the government could, in principle, impose fuel rationing, restrict operating hours for factories, cinemas, entertainment venues and restaurants, set conditions on vehicle use, and control electricity consumption in buildings and for advertising. Violations can carry severe penalties, including jail terms and fines. These powers were designed to allow rapid, centralised action rather than relying on separate ministries to respond under ordinary laws.” In India, panic buying has spread, with police being called in some instances to manage order at fuel stations. The situation got bad enough to prompt a response from the government, which has tried to absorb the price shock in its fiscal buffers given that elections are approaching in some key states. Sri Lanka has rolled out an app-based rationing system that it developed in the days of their default, to ration daily sales of petrol per consumer, and allow the quotas to be tradable. All around Asia, examples are piling up. Country after country is struggling with a fuel crisis that is only going to intensify in the days ahead. And they’re all reaching for extraordinary steps, each pulling up whatever arsenal of measures they have in their toolkit, to try to manage shortages that are crippling their economies. No country is unaffected. Those who have passed on even a part of the burden to their citizenry are feeling the heat. Those who have not, like India, are facing skyrocketing subsidy bills and panic buying regardless of the assurances their government is issuing. From China to Japan, Australia to India, the Philippines to Indonesia, and all in between, everybody is reeling from the price and supply disruptions emanating from the blockage of the Strait of Hormuz. One by one, they are throwing out the old textbook. This is a crisis no market mechanism can manage. The state has to step in. Some of the countries have far larger stocks than Pakistan — from 45 to 75 days of cover versus Pakistan’s 28 days — and yet they are struggling to control the situation. None of them can afford to carry the full cost of the price hike on their fiscal accounts. India is trying, but it has a bit of an unwritten rule there that governments don’t adjust fuel prices in the run-up to an election. It just so happens that this is no ordinary fuel price shock; how long it can hold on is anyone’s guess. Pakistan has no choice but to navigate these waters. Our fiscal envelope is too weak to carry the burden of fuel price subsidies for very long. Having held them steady for two weeks now, the government is in the unenviable position of having to pass on another major jolt to the people to avoid derailing its fiscal framework altogether. It is developing rationing systems, which is fine, and hopefully the systems will work. It might consider freezing OMC margins too, and tell the oil companies to carry their share of the burden. But a price hike will become unavoidable within days now. The petrol dealers’ association thinks it can make some hay while the sun shines. Sensing desperation from the government, they are asking for an increase in their margins as well, otherwise they are threatening to shut their pumps. Their point is that their capital cost has gone up sharply with the price hike, and they need more liquidity to be able to manage their ability to buy petrol and diesel stocks for onward sale. This demand should be resisted. The message needs to go out that this is not the time to be making profits. It is the time to share the burden. The situation is going to intensify, and greed must not be allowed to call the shots. The writer is a business and economy journalist. khurram.husain@gmail.com X: @khurramhusain Published in Dawn, March 26th, 2026
DawnMarch 26, 2026 at 04:35 AM UTCCentre asks provinces to help shoulder fuel price burden
• Punjab, Sindh expected to revert after internal consultations on whether they have requisite fiscal space • Sharjeel Memon vows to implement any measures introduced by federal govt • Rs27bn released to settle oil industry’s price differential claims after PM decided to ‘hold’ petroleum prices, in spite of global surge ISLAMABAD: The Centre is asking provincial governments to share the additional cost of higher international prices in a bid to avoid a domestic hike in prices of essential petroleum products, sources told Dawn. Insiders say the federal government is reaching out to the provinces, particularly Punjab and Sindh, to shoulder the fiscal burden it had been extending to the people across the country by maintaining petrol and diesel rates. These demands have been extended to the provinces in personal interactions and telephonic contacts by the prime minister himself, as well as other cabinet members, a senior government official said. The official hinted that the two larger provinces are expected to revert after internal consultations to suggest whether they have fiscal space available, or would have to scale down their annual development plans (ADPs) to do so. The federal government has also asked the provincial governments to participate in Centre-proposed austerity measures and energy and fuel conservation efforts — both in the public and private sectors — through increased virtual meetings, work-from-home and scattered attendance at offices and educational institutions. While the provinces were already taking conservation measures at their own, the official said, a coordinated effort was required at the national level for minimal use of air-conditioners and car-pooling via a carrot-and-stick policy based on a proper audit mechanism through notified monitoring committees at the ministerial and provincial levels. The official said the extent of cooperation from the provinces would determine the future course of petroleum pricing. He said international prices of crude, diesel and petrol had dropped over the past two days, but under the existing pricing arrangement, petrol and diesel had a price gap of about Rs75 and Rs175 per litre, respectively. Separately, Sindh Transport Minister Sharjeel Inam Memon said that his government will respond to any decisions taken by the federal government to prevent a fuel shortage. The provincial government was already implementing all federal decisions, he said, adding that further important measures are also being taken. “All possible steps are being taken to ensure public needs are met and fuel reserves are maintained. These measures will remain in place until the situation is fully under control,” a statement quoted him as saying. Mr Memon said that if the federal government decided to impose a lockdown, Sindh would fully implement it. Price differential disbursements Meanwhile on Wednesday, the Ministry of Finance said it released Rs27bn to the Oil & Gas Regulatory Authority (Ogra) for settlement of the oil industry’s price differential claims (PDCs) on account of unchanged petrol and diesel rates for two weeks, despite a surge in the international market. “On the directions of the Prime Minister, Ogra has been provided the first tranche amounting to Rs27 billion, from Prime Minister’s Austerity Fund, to settle the PDCs arising from the Government’s decision to shield the consumers from the impact of rising oil prices in the international market,” the MOF said in a statement. The funds have been arranged through various expenditure reduction measures implemented within the federal government and deposited in the PM Austerity Fund, it said adding that government was also considering additional cost-cutting measures to ensure that the relief to the public was provided while staying within the budget and identifying additional savings. Earlier, the petroleum division of the energy ministry had announced on March 14 that the prime minister had approved keeping the prices of HSD and MS unchanged, and that the government will pay the price differential on both HSD and MS to OMCs. The estimated PDC of OMCs for the period from March 14, 2026, to March 20, 2026, was worked out at Rs23bn, which has now been provided to the Ogra. The finance ministry had obtained prior approval of the Cabinet for the creation of the ‘Prime Minister’s Austerity Fund’ and of ECC for allocation and transfer of a sum of Rs27.1bn to the Fund. The mechanism for payment of PDC has been developed by Ogra in consultation with the MOF and also included the process for verification/audit of the invoices received from OMCs. Total PDCs are estimated to reach about Rs69bn with the additional impact of March 20 to 27 period. Published in Dawn, March 26th, 2026
DawnMarch 26, 2026 at 02:32 AM UTCPetroleum dealers postpone strike in light of Middle East conflict
KARACHI: Petroleum dealers announced on Wednesday that they were postponing a strike they planned to begin on March 26, keeping in view the situation resulting from the ongoing Middle East conflict, which has given rise to a global fuel crunch and supply uncertainties. Pakistan Petroleum Dealers Association (PPDA) Chairperson Abdul Sami Khan told Dawn that “we have postponed the strike, keeping in view the hardships consumers will face if the war escalates and leads to a supply chain crisis of petroleum products”. He did not give a confirmed date till when the strike was being postponed. Asked if the PPDA would call a strike in the near future, he said, “I cannot confirm right now as the situation is highly volatile.” The association had announced the strike on March 13 and given the government until March 26 to revise the petroleum dealers’ margin from 2.59 per cent to 8pc in the wake of a Rs55 per litre hike in diesel and petrol rates. The decision to raise the prices was announced on March 6 as Pakistan felt the first direct economic impacts of the US-Israel war on Iran in a big way. The PPDA chairperson said that the Economic Coordination Committee (ECC) had recommended an increase in dealers’ margin on petrol and diesel, before the Rs55 per litre hike. But, he claimed, the prime minister had suspended the implementation, and the margin remained unchanged even after the price hike. He said thus far, there had not been a “severe crisis of petrol and diesel” as dealers were getting the required quantities from the oil marketing companies (OMCs). On reports that the government had finalised a mobile application-based quota system for fuel for two- and three-wheelers, which may possibly include up to 800cc vehicles, to ensure a targeted subsidy to the low-income strata and to minimise oil consumption through pricing signals, he said: “The government has not taken petroleum dealers into confidence in this regard.”
DawnMarch 25, 2026 at 07:54 PM UTCBorder trade with Iran carries on despite Middle East war
QUETTA: Border trade, including the supply of Iranian oil, LNG and electricity, has continued between Pakistan and war-torn Iran through the Makran region despite massive attacks by the US and Israel on key installations, including energy infrastructure. “Borders with Iran at Taftan, Gabad 251 Ramdan, Mand, Panjgur and other crossing points are open, and legal trade between the two countries is continuing as usual without any restrictions,” Naveed Kalmati, chairman of the Gwadar Chamber of Commerce and Industry (GCCI), told Dawn. Regarding petrol and diesel, he said that although the supply from Iran had decreased initially after the outbreak of hostilities between Iran and the US–Israel alliance, it had not stopped. He added that the prices of Iranian petrol and diesel had risen even along the coastal belt because of the reduced supply. “Another reason for the increase in fuel prices is hoarding by profiteers seeking to earn illegal profits,” Mr Kalmati said. GCCI chief says prices of Iranian fuel have risen, even along coastal belt, due to reduced supply On LNG, the GCCI business leader said that its supply was also continuing through Gabad, Mand, Panjgur and Taftan. “Every day, LNG-loaded bowsers are crossing into Taftan, Mand and Panjgur,” he added. However, people involved in the trade of smuggled Iranian oil insist that supplies continue uninterrupted. “Iranian petrol and diesel are arriving by land and sea routes as usual. There has been no reduction in supplies despite the war imposed by America and Israel,” Muhammad Yousaf Kolanchi, a leading Iranian oil supplier in Gwadar, told Dawn, adding that there was no shortage in Gwadar or other coastal areas. In the local market, the price per litre has increased to Rs130-170, while at the start of the war it had jumped up to Rs200 per litre. Power supply from Iran to the Makran region also remains intact. “We are receiving uninterrupted electricity for all three districts of the Makran division, namely Gwadar, Panjgur and Turbat,” a Qesco official said, adding that Pasni, Jiwani and other areas were also connected to the transmission line coming from Iran. As for food items, supplies also continue. “Cooking oil, flour, sweets, vegetables, fruits, honey, confectionery items, eggs, poultry and many other goods are arriving from Iran,” said Hakeem Kashapi, a trader involved in cross-border commerce. In Quetta, however, prices of Iranian products have surged due to profiteering by those involved in the Iranian oil trade. While Iranian petrol sells for Rs160-170 per litre in the Makran region, it is being sold at Rs270 to Rs300 per litre in Quetta. Behram Baloch in Gwadar also contributed to this report Published in Dawn, March 25th, 2026
DawnMarch 25, 2026 at 03:09 AM UTCGovt may have to ‘unfreeze’ fuel prices amid global surge
• Targeted subsidy for two-, three-wheelers on the anvil • Jet fuel, kerosene prices rise quietly, but dramatically • Rising jet fuel costs push up domestic, international fares by 30-40pc • Passenger volumes on Gulf routes drop; Europe-bound travellers face limited routes, exorbitant prices • Exporters sound alarm over rising air cargo rates ISLAMABAD: Amid a sharp rise in jet fuel and kerosene prices, the government is considering unfreezing prices of other petroleum products to reflect global trends, while introducing targeted subsidies for two- and three-wheelers. While petrol and high-speed diesel prices have been kept unchanged in recent weeks, the rates of jet fuel (JP-1) and kerosene have been increased without formal announcement. Official rates seen by Dawn suggest JP-1 prices were raised by Rs84 per litre, or 21.65 per cent, to Rs472 from Rs388 per litre with effect from March 21. Since March 1, the price has surged by nearly 150pc from Rs190 per litre. Similarly, kerosene prices increased by Rs71 per litre, or about 20pc, to Rs429 per litre from Rs358 per litre within a week. Since early March, kerosene prices have risen by 127pc, reflecting global energy market volatility following the US-Israel war on Iran. On the other hand, the government froze petrol and diesel prices after an initial increase of Rs55 per litre each, allocating around Rs69 billion in subsidies to offset subsequent price revisions. While the government has protected its petroleum levy targets on both products, it has diverted funds from development projects and emergency funds for natural disasters to maintain prices during Ramazan. Officials said the government is currently absorbing about Rs175 per litre in diesel costs and around Rs75 per litre in petrol. Officials said the freeze could not be sustained for long while the review of two IMF programmes had been held in abeyance for more than two weeks now. “You cannot postpone inflation artificially for long; the more you delay price adjustments, the greater pain you build for the future,” an official said. It was in this background that the government said it is “actively evaluating price divergence between international and domestic markets to support balanced and timely policy calibration”. The statement followed a meeting of a special cabinet committee, formed by the prime minister to monitor petroleum prices and review the energy supply situation amid global volatility. The committee also reviewed a proposal for targeted fuel subsidies for two- and three-wheelers instead of holding back general oil price adjustments. Officials said petroleum inventories remain at comfortable levels, supported by secured imports and steady refinery output, with supply chains functioning smoothly across the country. Cargo inflows are continuing as scheduled, with March and April fuel shipments largely secured and additional imports planned to strengthen reserves. Refineries were operating at regular production levels, with efforts underway to maintain optimal throughput and ensure efficient processing of incoming crude. The finance minister, who chaired the meeting, directed authorities to ensure close monitoring of international markets, stock levels and supply chains. A detailed review of national stocks and international energy market conditions was presented, highlighting notable movements in global benchmarks. The committee assessed emerging global price signals and their transmission implications, and placed particular emphasis on operational readiness across the domestic energy supply chain. Airfares under pressure Rising jet fuel prices are expected to further increase airfares on both domestic and international routes, with airlines already passing on increased costs to passengers. Aviation experts said fuel, which accounts for 30-40pc of airline operating expenses, has become significantly more expensive, forcing airlines to raise fares by 20-30pc. “Domestic ticket prices have increased by Rs10,000 to Rs15,000, while international fares have gone up by Rs30,000 to Rs40,000,” an aviation official told Dawn, adding that further increases are likely if global oil prices continue to rise. Air travel to Europe has been particularly affected due to restricted airspace and limited routes through the Gulf region. The owner of a travel agency told Dawn that due to the air traffic chaos over the Gulf countries, people going to Europe via Turkiye had to pay several hundred thousand more per ticket during the last couple of weeks. “Last week, a Lahore to Denmark ticket via Dubai, which was previously available for Rs400,000, was selling for Rs1 million via Turkey last week because of the impact of the war,” he said. Experts also warn that flying schools and training centres are also facing mounting costs. “How can Pakistani airlines avoid passing on additional costs to passengers for long?” an aviation expert said. “The training cost of pilots has significantly increased due to the surge in jet fuel prices”. Since the start of the Middle East war, around 325 flights of Pakistani airlines — including about 200 operated by Pakistan International Airlines (PIA) — have been cancelled, according to a spokesperson for the national flag carrier. PIA continues to operate flights to Fujairah and Al-Ain, while services to Kuwait, Qatar, Dubai and Bahrain remain suspended. Flights to Saudi Arabia are operating as scheduled. The spokesperson said base airfares had not been increased, but fuel surcharges ranging from $10 to $100 had been introduced. Regarding the impact on volume of passengers, he said the numbers coming from Saudi Arabia and UAE were quite high, while passenger traffic for the Gulf region from Pakistan had declined. Flight operations to Qatar, Kuwait, and Bahrain are already suspended, but no significant impact has been seen on traffic to Europe, even though these passengers have to pay higher costs due to longer routes that avoid troubled airspace. Meanwhile, exporters have raised concerns over rising air cargo costs. The Pakistan Fruit and Vegetable Exporters Association said ground handling companies have imposed an additional charge of Rs50 per kilogram on shipments, warning that exports could be disrupted. “This additional burden will cause financial losses to exporters,” the association said, adding that fruit and vegetable exports via air routes have already been affected. Mohammad Asghar in Rawalpindi and Zulqernain Tahir in Lahore also contributed to this report Published in Dawn, March 25th, 2026
DawnMarch 25, 2026 at 02:34 AM UTCPakistan’s petrol cargoes for March and April ‘largely secured’: finance ministry
The members of the committee formed to monitor petrol prices were told on Tuesday that cargo inflows were continuing as scheduled and petrol cargoes for the current month and for April had “largely been secured”, with additional shipments planned to further strengthen supply buffers. According to a post by the finance ministry on X, Finance Minister Muhammad Aurangzeb chaired a meeting of the committee to review the energy supply situation and assess developments in global oil and gas markets amid evolving geopolitical conditions. “The committee undertook a forward-looking assessment of the national petroleum supply outlook, reviewing stock availability of crude oil and refined petroleum products across the energy value chain. Members were informed that overall inventories remain at comfortable levels, supported by secured import arrangements and ongoing production,” it said. It added that supply lines from import terminals to refineries, storage installations, and retail outlets were reported to be operating in a “stable and orderly manner”, ensuring continuity of supply across the country. “Members were also briefed on inbound logistics and maritime operations supporting fuel supplies, noting that cargo inflows continue as scheduled and petrol cargoes for March and now for April have largely been secured, with additional shipments planned to further strengthen supply buffers,” the ministry said. “Refineries are operating at regular production levels, with efforts underway to maintain optimal throughput and ensure efficient processing of incoming crude,” it said. The ministry said that the meeting also reviewed national stocks and international energy market conditions. “The committee assessed emerging global price signals and their transmission implications, noting that the government is actively evaluating price divergence between international and domestic markets to support balanced and timely policy calibration,” it said. “The meeting placed particular emphasis on operational readiness across the domestic energy chain. The committee underscored that refineries must continue operating at optimal throughput levels to sustain supply stability and reduce systemic vulnerabilities. The meeting also included a detailed assessment of international energy market trends and geopolitical developments impacting global supply dynamics,” it added. Further, the Committee also reviewed ongoing government-to-government engagements aimed at strengthening supply resilience and mitigating risks. Members were briefed on diversified sourcing strategies and logistical arrangements with key partner countries to secure crude and refined products, enhance storage and transshipment options, and ensure flexibility in procurement and financing mechanisms, the ministry said. “These coordinated efforts are aimed at reinforcing energy security and safeguarding supply continuity under evolving market conditions,” it added. It quoted the finance minister as saying that proactive planning, diversified procurement strategies, and close coordination among stakeholders had enabled Pakistan to maintain a stable domestic supply position despite global volatility. “He directed all relevant authorities to continue vigilant monitoring of international developments, stock levels, and supply chain dynamics to ensure timely and coordinated policy responses,” it said. He also reiterated that ensuring the uninterrupted availability of petroleum products remained the government’s foremost priority and emphasised that sustained coordination and prudent planning would continue to guide efforts to maintain market stability and safeguard national energy security. Earlier this month, the government hiked the prices of petrol and high-speed diesel by Rs55 per litre to manage the impact of the US-Israel war on Iran, which has triggered a global oil crisis. Subsequently, the government also announced unprecedented austerity measures to cope with the fuel crisis. The measures included a 50 per cent cut in fuel allowance for official vehicles and a four-day work week. It was also decided that 50pc of staff in the public sector would work from home; however, those providing essential services are exempt. Last week, the government had appealed to the public to adopt fuel-conservation measures to “avert the risk of petroleum products’ supply getting affected in the coming days”. On Sunday, PM Shehbaz announced an increase in the levy on high-octane fuel, a premium-grade petroleum product with a higher octane rating, used mainly in luxury and high-performance vehicles, by Rs200 per litre.
DawnMarch 24, 2026 at 04:03 PM UTCJI chief flays govt for ‘burdening’ common citizen with high petroleum prices
Jamaat-i-Islami chief Hafiz Naeemur Rehman on Tuesday once again criticised the government for its major hikes in petroleum prices — following the closure of Hormuz Strait — and termed them a burden on the common citizen. Earlier this month, the government hiked the prices of petrol and high-speed diesel by Rs55 per litre to manage the impact of the US-Israel war on Iran, which has triggered a global oil crisis affecting many countries, including Pakistan. Although Prime Minister Shehbaz Sharif last week said he had twice rejected recommendations for further increasing petrol and HSD prices, they effectively remain unchanged at Rs321.17 and Rs335.86 per litre, respectively. Addressing a press conference in Lahore today, the JI chief said the 20 per cent increase in the petroleum development levy (PDL) had pushed prices to Rs120–125 per litre, affecting journalists, students, workers, and riders. “The government can reduce petrol prices by cutting the levy,” he suggested, adding that thermal power units using petrol should also see immediate reductions. Rehman linked rising prices to broader government mismanagement and called for investigations into agreements with Independent Power Producers (IPPs), claiming the economy is under strain in what he described as a “war-like situation”. He claimed: “Even if we remove the levy, the IMF (International Monetary Fund) argues that targets will not be met, but no Pakistani company has the capacity to challenge the government in an international court under the current system.” In the government’s latest move aimed at absording the impact of the global oil crisis, PM Shehbaz on Sunday announced a Rs200 per litre increase in the levy on high-octane fuel, a premium-grade petroleum product used mainly in luxury vehicles. “This decision will reduce the burden on the economy; the richest class in the country will bear the burden,” a statement by the PM’s Office said. Assails Trump for Middle East war Rehman also criticised the ongoing hostilities in the Middle East, stating: “The war should stop, and it has become clear that the US and Israel have suffered a defeat. They attacked and claimed they would change regimes. “They even celebrated the assassination of Ayatollah Khomeini,” the JI chief added, referring to Iran’s slain supreme leader. Commenting on US President Donald Trump, Naeem said, “Trump keeps claiming success in the first hour, but they were defeated. It once again proves that he does not understand history; he operates on a business agenda and aims to control the world through power.” Naeem linked domestic challenges to international threats, insisting that the US and Israel remain hostile to Pakistan. He praised the Palestinians and Iranians for resisting oppression and stressed the need for Pakistan to recognise its “real enemies” to protect its defence, nuclear programme and ideology.
DawnMarch 24, 2026 at 09:03 AM UTCStopgap relief
THERE is fiscal logic in the government’s decision to sharply increase the petroleum levy on high-octane fuel — a niche product consumed almost exclusively by owners of luxury and high-performance vehicles. By extracting around Rs9bn per month from those with the greatest capacity to absorb the cost, and redirecting that amount to shield the broader public from surging oil prices, the policy introduces an element of targeted relief. That said, the merits of the move should not be overstated as the decision is more of a stopgap response than a strategy. Though not trivial, the step is modest relative to the pressures generated by the global oil price shock and does little to address the structural conditions responsible for our vulnerability to external energy shocks: deep reliance on imported fuels, a precarious external account and fiscal space too narrow to absorb prolonged volatility without raising prices or running deficits. Targeted relief buys time but time without reform is a deferred liability. Finance Minister Muhammad Aurangzeb’s own admission that “hope is not a strategy” as the world waits for the US-Israel war on Iran to end applies with equal force to the government’s broader approach to rising energy prices. The earlier steps announced — reduced fuel allowances, partial work-from-home arrangements, etc. — are also limited. Even if hostilities were to subside soon, downstream effects like supply chain disruptions, production shutdowns and rerouted trade flows could sustain elevated prices beyond any ceasefire. The need is to move towards permanent structural demand management. Early closure of markets, restaurants and businesses — measures long avoided due to political economy constraints — should now be treated as baseline policy rather than emergency improvisation. Our energy consumption patterns are inefficient and poorly regulated because they have been politically inconvenient. With fiscal and external buffers as thin as they are, that inconvenience can no longer serve as justification for inaction. If the aim is to rebalance the burden towards higher-income groups, the petroleum levy adjustment is insufficient by itself. The deeper problem is not, as Prime Minister Shehbaz Sharif has repeatedly framed it, one of asking the elite to ‘sacrifice’ in times of crisis. It is the chronic failure to ensure that powerful segments of society consistently meet their existing tax obligations. A country where the majority live in poverty or are vulnerable to the slightest shock, cannot rely on ad hoc measures to deliver equity. Broadening the tax base and eliminating preferential treatments for powerful segments of society are not crisis-time options, they are structural imperatives. The current crisis underscores how external shocks quickly translate into domestic instability when underlying imbalances remain unaddressed. The government’s response so far does not show the scale of resolve required. Published in Dawn, March 24th, 2026
DawnMarch 24, 2026 at 04:38 AM UTCPresident Zardari directs ministers to prioritise public relief, curb fuel price burden
LARKANA: President Asif Ali Zardari on Monday directed the government to prioritise public relief, minimise the burden of petroleum prices and ease economic pressure on citizens during a high-level meeting at Bhutto House, according to the press release. The meeting was attended by Interior Minister Mohsin Naqvi, Finance Minister Muhammad Aurangzeb and Petroleum Minister Ali Pervaiz Malik, along with PPP Chairman Bilawal Bhutto Zardari, Sindh Chief Minister Murad Ali Shah, Faryal Talpur and Sindh Local Government Minister Nasir Hussain Shah. According to officials, the participants reviewed the overall law and order situation, the country’s economic outlook, and developments in the energy sector, including petroleum product pricing. The interior minister briefed the president on ongoing counterterrorism operations and border security. The meeting also discussed tensions between Pakistan and Afghanistan, as well as a detailed overview of broader regional security challenges. The finance and petroleum ministers apprised the president of key economic indicators, the state of the energy sector and steps being taken by the government regarding prices of petroleum products. President Zardari emphasised that economic policies must focus on providing relief to the public, directing authorities to ensure that rising fuel costs do not disproportionately impact the common man.
DawnMarch 23, 2026 at 11:18 AM UTCAs INR hits record low, Modi optimistic about economic fundamentals, reserves
MUMBAI: The fundamentals of the Indian economy are strong and the country has adequate availability of petroleum, fertilisers and coal to weather trade and energy disruptions caused by the US-Israel war on Iran, Indian Prime Minister Narendra Modi told parliament’s lower house on Monday. The conflict, which began last month, has disrupted sectors from air travel to shipping and gas supplies, including by the near-closure of the Strait of Hormuz, which serves as a conduit for 40 per cent of India’s crude oil imports. His statements comes as the Indian rupee fell to a record low of 93.84 against the US Dollar, eclipsing its previous low of 93.7350 hit on Friday. The rupee, among the currencies most exposed to sustained oil price increases, has weakened about 3pc on the back of the escalating conflict, stoking worries over sustained disruption of energy supplies, threatening the outlook for Asia’s third-largest economy. Modi told the Lower House of Parliament that India has sufficient petroleum availability, with strategic reserves currently exceeding 5.3 million metric tons, and work underway to create reserves of another 6.5 million metric tons, Modi told the lower house. “The inherent strength of India’s economic fundamentals has … provided significant support to the nation during this period,” he said. Adequate arrangements have also been made for fertilisers supply for the summer sowing season that starts in June-July, and for coal to meet the rising demand for electricity as temperatures rise, he added. The South Asian country, the world’s most populous and fastest growing major economy, still relies on coal for three-fourths of its electricity generation, even as it ramps up renewable energy generation at a record pace. The Indian economy is estimated to grow by 7.6pc in the fiscal year ending March 2026, the National Statistics Office said last month. It is projected to grow between 7pc and 7.4pc in FY27. Analysts say a prolonged crisis in the Gulf region could significantly dampen India’s growth in FY27 due to surging energy costs and supply chain disruptions. Modi had emphasised the importance of ensuring shipping lanes remain open and secure despite the war during a conversation with Iran’s President Masoud Pezeshkian on Saturday. Asian currencies were down between 0.1pc to 0.8pc as hopes for an off-ramp to hostilities dimmed over the weekend with Washington and Tehran trading threats as the war entered its fourth week. The conflict has boosted oil prices by over 50pc this month. The International Energy Agency has said the crisis is worse than the two oil shocks of the 1970s put together. BofA Global Research expects the rupee to trade at 94 by June 2026, versus its forecast of 89 earlier, assuming that the ongoing crisis resolves in a few weeks.
DawnMarch 23, 2026 at 10:42 AM UTC