Fuel supply fears dominated the Senate on Friday as PPP’s Sherry Rehman questioned petrol availability for December and Opposition Leader Raja Nasir Abbas warned of a bleak outlook. The petrol supply Pakistan debate raged even as the government insisted there were no issues.
Minister of State for Finance Bilal Azhar Kayani said over 10 million people were benefiting from the targeted fuel subsidy, Rs1,676 billion had been budgeted under the petroleum levy this year, and there was no supply problem at petrol pumps.
He said regional conflict was pushing petroleum prices up globally, but targeted relief was reaching motorcyclists, rickshaw and loader operators, and small-car users. Finance Minister Muhammad Aurangzeb had said last week that supplies would last through November.
Petrol supply Pakistan: will there be rationing?
But what about December, asked Rehman. “What is the government’s plan for the availability of petroleum products? Will there be rationing? Members of Parliament have concerns whether petrol will be available till December,” she said, demanding a parliamentary briefing on contingency plans.
She said reports of renewed attacks on Iran and escalating West Asia conflict had deepened uncertainty around Pakistan’s petroleum supplies, with direct implications for energy security and the lives of ordinary citizens. “These are not minor concerns,” she said.
She warned that any LPG supply disruption would hit hard across the country: Pakistan imports nearly 70 per cent of its LPG needs against 30 per cent domestic production. Five LPG cargoes arrived last year; only two are expected this year, she said, demanding a supply plan for Parliament.
Carbon levy not spent on climate, Rehman alleges
Turning to the carbon levy, Rehman, who chairs the Senate Standing Committee on Climate Change, claimed it was not being spent on environmental protection. “Yesterday, during the committee meeting, the finance additional secretary acknowledged that the carbon levy is not being spent on environmental projects,” she said.
She noted that a levy, unlike a tax, should be ring-fenced, yet the money was flowing straight into the Federal Consolidated Fund with no earmarking for climate action, despite the devastating floods facing all provinces. “There has to be accountability for every rupee collected,” she said, demanding the levy be dropped from the next budget unless restructured as a ring-fenced carbon tax disbursed in consultation with the climate ministry.
Opposition warns of bleak outlook
Senate Opposition Leader Raja Nasir Abbas warned that a war engulfing key energy routes would worsen Pakistan’s energy crisis, linking the external threat to domestic shortages: Punjab was already facing a flour shortage while the country was witnessing an LPG shortage. He said politicians were ignoring real issues and were busy trying to “conquer” provinces, a reference to the October 11 emergency and governor’s rule in Khyber-Pakhtunkhwa. He also said Pakistan should mediate between Yemen’s Houthis and Saudi Arabia.
Choked sea lanes drive the anxiety
The anxiety is rooted in the region’s energy geography. Houthi attacks on Saudi infrastructure, including energy facilities and airports, coupled with the US-Israeli war on Iran that began in February, have choked the Straits of Hormuz and Bab al-Mandab and pushed energy prices up globally.
Aurangzeb said last week that Pakistan had so far withstood the shock but called attacks on Gulf infrastructure “worrying” for the longer-term outlook. He said the country had procured enough energy supplies to last through November and was now planning for the winter months, when household needs typically spike.
The pressure is already visible at home. Pump owners have had to track daily fuel price adjustments, while petrol and diesel prices feed directly into weekly inflation, which climbed to 11.85 per cent. With the rupee trading around Rs276.82 to the dollar and gold prices swinging sharply, households are absorbing cost shocks on several fronts.
Frequently asked questions
What did Sherry Rehman ask in the Senate?
She asked whether petrol would be available in December, whether the government planned rationing, and demanded that Parliament be briefed on fuel contingency plans.
What did the minister say in response?
Kayani said there were no supply issues, over 10 million people were benefiting from the targeted fuel subsidy, and Rs1,676 billion had been budgeted under the petroleum levy.
How much LPG does Pakistan import?
Nearly 70 per cent of LPG needs are imported. Pakistan received five LPG cargoes last year; only two are expected this year.
