Pakistan admitted that it couldn’t handle the rising price of oil worldwide because it doesn’t have the strategic oil stocks that India does, which have helped India handle the problem.
Pakistan admitted on Friday that it couldn’t handle the rising global oil price because it doesn’t have the critical oil stocks that India does.
This comes at a time when the price of crude oil has risen sharply due to problems in West Asia and on global supply lines.
A story from ANI says that Pakistan’s energy minister, Ali Pervaiz Malik, said on TV that the country only has enough oil for a few days and doesn’t have any strategic stocks to fall back on.
The sharp rise in prices—they recently went over $125 per barrel—has put a lot of stress on countries that buy fuel. Because of the continuing double blockage by the US and Iran in the Strait of Hormuz, trade has been slowed down. This has raised worries about energy security, especially for countries with small supplies.
Pakistan is at risk when it comes to energy
Malik said in the interview that Pakistan only has enough crude oil to last for five to seven days. He also said that oil trading companies hold enough refined fuel to last for twenty days. He stated that the country doesn’t have enough oil to last for a long time.
India, on the other hand, is thought to have between 60 and 70 days of strategic and trade supplies. This makes it easier for India to get rid of its oil stocks in case of an emergency and keeps prices stable.
Malik also said that India has been able to handle the current situation better because it has better economic planning and bigger foreign exchange savings.
Read also: Pakistan Cuts Petrol Prices by 80 Rupees Amid War Driven Crisis
The IMF limits what Pakistan can do
Pakistan has even less power to react because of its obligations to the International Monetary Fund (IMF). To keep its budget shortfall in check, the government has to keep fuel taxes high, which doesn’t leave much room for price cuts.
The minister said that in order to get help, Islamabad had to talk to the IMF behind closed doors. To help riders, targeted funds were also put in place.
People are angry because prices are going up
Pakistan has seen a lot of riots because of the energy problem. Even though Prime Minister Shehbaz Sharif recently said that gas prices would be going down, earlier price increases had already caused prices to reach all-time highs (PKR 378 per litre for petrol), which made people angry and caused shortages.
Iran and the US are at odds with each other around the world, which has made things worse by blocking oil supplies along important lines. A lot of the world’s oil exports go through the Strait of Hormuz by itself.
Read also: American ex-envoy Juster says warming US-Pakistan relations may weaken India’s ‘muscular’
India remains relatively stable
India, on the other hand, has been able to keep its fuel prices pretty fixed. As required by law, the government has changed taxes and used its savings to lessen the effects of rising crude oil prices around the world.
Many people think that countries with bigger savings and stronger finances are better able to handle these kinds of shocks, while other countries are still open to sudden supply problems.
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