As oil prices soared past $100 per barrel for the first time in almost four years on Monday amid the escalating Middle East conflict, countries, including Pakistan, scrambled to save their fuel reserves. Islamabad implemented nearly a dozen measures to save fuel.
Pakistani prime minister Shehbaz Sharif on Monday reportedly announced several oil-saving measures to deal with the ongoing worldwide fuel crisis, triggered by the US-Iran war. Follow US-Iran war news live updates
"The regional situation and war have affected our hard-gained economic stability, but the government is making every effort to prevent burdening the common man," Sharif said in an address to the country.
The move also comes after the Pakistani government hiked fuel prices by 55 rupees on Saturday, to the country's highest-ever rate. Additionally, petroleum minister Ali Pervaiz Malik warned that prices could be adjusted weekly, Bloomberg reported.
Pakistan's measures to save oil
- Reducing the workforce by half, along with moving to a four-day workweek.
- Government expenditure will be reduced by 20 per cent for the next two months, and fuel allocated to government departments' vehicles will also be cut by half.
- Schools will remain closed for two weeks from next week while universities move to online mode.
- Cabinet members will not receive a salary for the next two months.
- A ban has also been imposed on unnecessary official foreign tours.
- Seminars and conferences will also be held in government buildings instead of hotels.
Surging fuel prices could see inflation increase from 7 per cent to around 9.25 per cent in the April-June quarter, Muhammad Awais Ashraf, the director of research at AKD Securities, was cited as saying by the news outlet.
{{/usCountry}}Surging fuel prices could see inflation increase from 7 per cent to around 9.25 per cent in the April-June quarter, Muhammad Awais Ashraf, the director of research at AKD Securities, was cited as saying by the news outlet.
{{/usCountry}}Follow Dubai, Abu Dhabi news live updates
Ashraf said raising prices was important "as soon as they increase on the international market" to prevent petrol pumps from hoarding fuel.
Maryam Nawaz Sharif, the chief minister of Pakistan's Punjab, also announced "extraordinary" measures for her state. In a post on X, Maryam said she would be implementing the following steps:
- Immediate 50 per cent reduction in petrol and diesel allowances for government officers' vehicles.
- Protocol vehicles accompanying provincial ministers and senior government officers have also been restricted. For essential security purposes, only one vehicle for such individuals.
- Government offices to implement a work-from-home policy, with only essential staff attending classes.
- Schools, colleges and universities will remain closed from March 10 to March 31. However, examinations will be held as scheduled.
- Educational institutes may conduct online classes during this time.
- Official matters will be handled via online meetings and conferences.
- All government outdoor events are suspended.
- District Petroleum Monitoring Committees have been established in every district to ensure strict oversight of petroleum supplies.
- Only additional support staff movement will be restricted during the WFH policy; government work will continue without interruption.
- The private sector is advised to adopt WFH measures whenever possible and to avoid unnecessary events.
- District administrations have been directed to strictly monitor transport fares and take action against overcharging.
- The public is urged to avoid outdoor events, late-night shopping, and unnecessary hoarding of essential goods during this time.
Oil prices soar past $100
With major Middle East producers cutting production and the Strait of Hormuz remaining largely closed, oil prices surged past $100 a barrel for the first time in almost four years on Monday.
International benchmark Brent crude oil price soared to a 45-month high of nearly $120 per barrel, a 64 per cent jump from $72.87 per barrel before the US-Israel war with Iran started ten days ago.
The West Texas Intermediate, the light, sweet crude produced in the US, also traded at around $114 a barrel.
Oil prices fall after Trump hints at 'end' of war
Just a day after the massive jumps in oil prices, US President Donald Trump suggested that the war with Iran, and subsequently the Middle East conflict, could end soon.
Trump's remarks eased concerns about prolonged disruptions to global fuel supplies, with oil prices falling more than 6 per cent.
Brent futures fell by 6.6 per cent, to $92.45 per barrel, while the US West Texas Intermediate crude was down by 6.5 per cent, to $88.65, Reuters reported.
Amid escalating tensions across the Middle East, Trump said the war is "very complete" and almost over. He said, the war is "very complete, pretty much".
The US President also stated that Iran has no navy, communications, or air force left. "Their missiles are down to a scatter. Their drones are being blown up all over the place, including their manufacturing of drones," he added.
Trump also warned Iran, urging the Islamic Republic not to "try anything cute".
"They've shot everything they have to shoot, and they better not try anything cute or it's going to be the end of that country…If they do anything bad, that would be the end of Iran, and you'd never hear the name again," Trump said.
He also claimed that the Strait of Hormuz is now open, saying ships have been entering the strait. Trump said he is mulling a US takeover of the key oil passage.