Government Considers Fuel Conservation Measures Amid Rising Global Oil Prices

The federal government is considering bringing back a number of fuel conservation and cost-saving measures as it responds to rising international oil prices and increasing pressure on Pakistan’s foreign exchange reserves.

According to officials, the proposals have been discussed by Prime Minister Shehbaz Sharif and are expected to be presented before the federal cabinet for review and approval.

Proposed Energy-Saving Measures

If approved, the proposed measures could include:

• A four-day working week for selected government offices.
• Reduced staff attendance in public sector offices.
• Lower use of official government vehicles.
• Increased use of virtual meetings.
• Restrictions on non-essential official foreign travel.
• Reductions in certain government operational expenditures.
• Highway speed limits aimed at improving fuel efficiency.

Officials say the proposals are intended to reduce fuel consumption and help manage the country’s foreign exchange reserves.

Focus on Foreign Exchange Reserves

The government aims to maintain foreign exchange reserves at a level sufficient to cover approximately three months of imports.

Authorities are closely monitoring international oil markets as higher crude oil prices continue to affect Pakistan’s import costs and overall economic outlook.

Daily Fuel Pricing System Continues

Officials also clarified that the recently introduced daily petroleum pricing mechanism does not represent a fully deregulated fuel market.

Under the current system:

• Petrol and high-speed diesel prices may be reviewed on working days (Monday to Friday).
• Prices announced on Friday remain effective throughout the weekend and Monday.
• No revisions are issued on Saturdays or Sundays.

The Oil and Gas Regulatory Authority (OGRA) will continue to calculate fuel prices and submit recommendations to the Petroleum Division, which will issue official price notifications.

To improve transparency, OGRA is also expected to publish detailed fuel price calculations on its official website.

Government Retains Pricing Oversight

Officials emphasized that the government will continue to regulate key elements of petroleum pricing, including taxes, levies, dealer and oil marketing company margins, freight equalization, and fuel supply management.

They added that Pakistan has not shifted to a fully deregulated petroleum market, where oil companies independently determine retail fuel prices.

Long-Term Energy Planning

Alongside short-term conservation measures, the government is also examining long-term strategies to strengthen energy security, including encouraging investment in oil storage infrastructure along Pakistan’s coastline.

Officials say the immediate priority remains managing foreign exchange reserves while responding to changing conditions in global energy markets.