ISLAMABAD: The Senate echoed with fuel supply concerns on Friday as PPP’s Sherry Rehman questioned petrol availability for December and Opposition Leader Raja Nasir Abbas warned of a bleak situation amid heightening Middle East tensions.
The concerns were raised even after Minister of State for Finance and Revenue Bilal Azhar Kayani said that there were no supply issues.
He told the Senate during the question hour on that more than 10 million people were benefiting from the government’s targeted fuel subsidy scheme, while Rs1,676 billion had been budgeted under the petroleum levy for the current year.
The subsidy was being provided at petrol pumps, and there was no fuel supply problem, he said.
Kayani added that the impact of regional conflict on petroleum prices was being felt across countries, but the government was providing targeted relief to motorcyclists, rickshaw and loader operators, and users of small cars.
Last week, Finance Minister Muhammad Aurangzeb also said Pakistan had procured enough energy supplies to last through November.
But what about December? asked PPP’s Rehman in the Senate on Friday.
“What is the government’s plan for the availability of petroleum products? Will there be rationing? Members of the Parliament have concerns whether petrol will be available till December,” she
She demanded that the government brief Parliament on any rationing and contingency plans it may have been working on.
Senator Rehman said reports of renewed attacks on Iran and escalating conflict in West Asia had added to uncertainty surrouding Pakistan’s petroleum supplies and had direct implications for the country’s energy security, economic stability and lives of ordinary citizens.
Wondering if Pakistan would have adequate supplies under current circumstances, she said, “These are not minor concerns.”
She warned that any disruption in the supply of liquified petroleum gas (LPG) would have a serious impact across the country, pointing out that Pakistan relied on imports for nearly 70 per cent of its LPG requirements while domestic production accounted for only 30pc.
Pakistan received five LPG cargoes last year, whereas only two were expected this year, she said, demanding that a supply plan be presented to Parliament.
Turning to the carbon levy, the PPP senator, who chairs the Senate Standing Committee on Climate Change, claimed the carbon levy on petroleum products was not being spent on environmental protection.
“Yesterday, during the meeting of the Senate Standing Committee on Climate Change, the finance additional secretary acknowledged that the carbon levy is not being spent on environmental projects. A levy is not a tax; it goes straight into the Federal Consolidated Fund where there is no ring-fencing for spending on climate action,” she said.
Rehman added that the revelation confirmed what was denied earlier during a Senate session.
“The levy is being absorbed into general federal receipts instead of being earmarked for climate resilience despite severe and devastating floods facing all provinces,” she alleged. “The federal government continues to collect this revenue through the petroleum levy, and the money goes into the Federal Consolidated Fund; it cuts through all the provinces. There should not be a carbon levy in the next budget, unless it is restructured as a carbon tax that is ring-fenced for mitigation and climate action. There has to be accountability for every rupee collected.”
“When an item is called a carbon levy, it is to be ring-fenced and then disbursed in consultation with the climate ministry,” she asserted.
For his part, Senate Opposition Leader Raja Nasir Abbas warned that a war engulfing key energy routes would worsen Pakistan’s energy crisis, as key maritime chokepoints come under threat.
He linked the external crisis to domestic shortages, saying Punjab was already facing a flour shortage while the country was witnessing an LPG shortage.
Meanwhile, politicians were ignoring real issues and were busy trying to “conquer” provinces, he said, seemingly referring to the imposition of governor’s rule and emergency in Khyber Pakhtunkhwa on Oct 11.
He also questioned the claims that terrorists were given shelter in Swat and asked how many had been caught. Meanwhile, police, who were the guarantors of peace, were being made to fight the public, he claimed.
He also touched upon the conflict between Yemen’s Houthis and Saudi Arabia, saying that Pakistan should mediate between the two sides.
With Yemen’s civil war flaring back to life as well, the Houthis there have repeatedly attacked Saudi infrastructure, including energy facilities and airports, in recent days.
This, coupled with the US-Israeli war on Iran that began in February, has resulted in the choking of key energy supply routes — the Straits of Hormuz and Bab al-Mandab — and energy price hikes globally.
Finance Minister Aurangzeb said during an interview last week that Pakistan had so far withstood the shock from skyrocketing energy prices, but attacks on infrastructure in Saudi Arabia and other Gulf countries were “worrying” for the country’s longer-term economic 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.