Govt mulls imposing speed limits to conserve fuel
The federal government is evaluating many austerity measures, including the implementation of speed limitations, as part of Pakistan’s national fuel conservation strategy in response to oil supply problems in the Middle East due to military actions by Israel and the United States against Iran.
Federal Minister for Petroleum Ali Pervaiz Malik stated that the government’s strategy comprises two key components.
“One aspect is conservation, specifically the habits we can adopt and the modifications we can make to our lifestyle to diminish our energy footprint in daily activities,” he stated.
Malik stated that negotiations with all provincial governments have been finalized, and the federal government will imminently unveil a number of actions. This may involve establishing speed limitations on automobiles to decrease fuel usage.
The minister stated, “Fuel consumption is directly correlated with vehicle speed.”
He observed that Pakistan implemented various analogous methods during the COVID-19 pandemic, including as remote work rules and transitioning educational institutions to online learning.
The government has announced a substantial hike of Rs55 per litre in petrol and diesel prices, attributing this to rising global oil costs associated with escalating tensions in the Middle East.
According to the revised rates, petrol costs Rs321.17 per litre, whereas diesel increased from Rs275.70 to Rs335.86 per liter.
Simultaneously, multiple factions inside the nation have advocated for the importation of Russian oil following Iran’s significant cessation of shipping via the Strait of Hormuz, jeopardizing around one-fifth of global oil supplies.
Ali Pervaiz Malik stated that importing Russian crude is not a feasible option due to various hurdles, including budgetary limitations.
“Russian Urals is a notably dense crude,” he stated, noting that the majority of refineries in Pakistan are antiquated hydroskimming facilities, with the exception of the Pak-Arab Refinery Company (PARCO).
“The refining of heavy crude in hydroskimming refineries produces a substantial quantity of furnace oil,” Malik elucidated. A carbon levy is applied on furnace oil under the International Monetary Fund’s Resilience and Sustainability Facility (RSF) due to its classification as a highly polluting fuel.
“This alters the dynamics and feasibility of importing Russian Urals into Pakistan,” he stated.
Malik stated that the government is in discussions with the IMF over the matter, emphasizing that global energy markets are presently experiencing significant demand.
“There is a fervent pursuit for each molecule,” he stated.
He stated that Pakistan has solicited the IMF to eliminate fuel levies under the RSF and the Extended Fund Facility (EFF) to facilitate the consumption of alternative fuels domestically and to mitigate issues in the gas industry.
Malik reports that LNG imports from Qatar have been halted, and the government is contemplating the use of furnace oil for electricity generation to satisfy energy demands.
“Consequently, Russian crude is not commercially viable due to the inadequacy of our refinery upgrades,” he concluded.