Pakistan fuel prices hit record; Shehbaz ministers warn of energy crisis

Pakistan is grappling with a rising energy crisis as global oil prices soar due to disruptions in key Gulf shipping lanes. Prime Minister Shehbaz Sharif's administration is under pressure to manage the impact of these price hikes while trying to protect consumers. Fuel prices saw a significant increase, with petrol jumping to PKR 384.34 per litre and high-speed diesel rising to PKR 415.83 per litre.

The government's fuel relief scheme aims to cushion the blow of the global oil shock by subsidizing petrol for motorcyclists up to 5 litres a week and up to 10 litres a fortnight for car owners. However, energy minister Awais Leghari warns that the relief program may not fully offset the hike in fuel prices. In August, 72% of Pakistan's electricity generation came from domestic sources, while the remaining 28% was imported.

The government is considering a "smart lockdown" as a measure to curb petroleum consumption, similar to steps taken during the US-Iran war. Information minister Atta Tarar hinted at the possibility of such measures if the regional situation worsened. Despite these efforts, a smart lockdown has not been officially discussed.

The fuel shock has also put political pressure on the government. The Jamaat-i-Islami party has threatened nationwide protests if fuel prices are not reduced. Additionally, Pakistan has adopted a daily petroleum pricing mechanism in response to global oil price volatility. The crisis is further exacerbated by Saudi Arabia shutting down its East-West oil pipeline following an aerial attack, adding to concerns over global oil supplies.