Pakistan’s weekly oil import bill jumps to $800mn amid US-Iran conflict, says PM

Prime Minister Shehbaz Sharif on Wednesday said that Pakistan’s oil import bill has surged sharply by around 167% to $800 million per week, up from around $300 million before the ongoing regional conflict.

The prime minister disclosed this while addressing the cabinet on Wednesday.

“International oil prices have surged again. This Friday, we will announce new domestic prices based on the international market situation. This is a very challenging situation,” said Shehbaz.

Oil rises on reports US will extend Iran blockade, prolonging Mideast supply disruptions

The prime minister lauded the role of Petroleum Minister Ali Pervaiz Malik and his team. “As a result of their joint efforts, unlike other countries, there were no long queues or panic buying in Pakistan, and the situation has remained stable.”

“Before the war, our weekly oil import bill was around $300 million. Today, it has reached $800 million.

“Therefore, conservation efforts are ongoing,” he said.

On the other hand, PM Shehbaz shared that the oil consumption had significantly decreased in the country compared to previous weeks.

Oil prices rose on ‌Wednesday, extending a multi-day rally, on reports that the US will extend its blockade of Iranian ports, likely prolonging supply disruptions from the key Middle East producing region.

Brent crude futures for June rose 52 cents, ​or 0.47%, to $111.78 a barrel at 0154 GMT, climbing for an eighth day. The June contract ​expires on Thursday, and the more active July contract was at $104.84, up 0.4%.

PM Shehbaz said that the government stabilised the economy at the macro level and it was moving towards growth.

“However, this sudden war has dented the collective efforts of the past two years. This is beyond our control, but we pray that this conflict ends and peace is restored.”

On privatisation front, the prime minister shared that he recently reviewed the progress on PIA.

Pakistan remains committed to serve as ‘honest and sincere facilitator’, says PM Shehbaz

“The good news is that, according to privatisation advisor Muhammad Ali, there will be no additional burden on the national exchequer, and the matter is being resolved.”

He shared that he had also asked the committee interacting with provinces to begin consultations for extending subsidies.

“While provinces have already supported the agriculture sector, we must request them to continue subsidies for public transport and other sectors,” he said.