Pakistan needs a multi-tiered fuel strategy — short-, medium- and long-term
| T |
he conflict involving Israel, the United States and Iran has begun to ripple through global energy markets, with fuel prices once again on an upward trajectory. For a country like Pakistan—already grappling with inflationary pressures and external account vulnerabilities—this presents a familiar but intensifying challenge. With no clear exit strategy in sight, sustained high oil prices in the coming weeks appear increasingly certain.
Against this backdrop, the government’s recent push for energy conservation measures in the fuel sector is both timely and necessary. However, while intent is evident, clarity of execution remains elusive. Conservation, if not quantified, risks becoming a rhetorical exercise rather than a policy intervention.
A central question remains unanswered: what exactly is the fuel-saving target and how will success be measured? Without defined benchmarks and transparent monitoring mechanisms, even the most well-meaning policies struggle to deliver tangible results.
Recent directives from the prime minister tasking the Intelligence Bureau with monitoring fuel consumption of the public sector fleet signal seriousness at the highest level. Yet, the issue at hand is not one of information scarcity. On the contrary, fuel consumption within the government fleet is among the more traceable aspects of public expenditure.
Most government vehicles already use fuel cards issued by Pakistan State Oil. These systems generate detailed, real-time consumption data—monthly and annually—mapped against authorised limits. For vehicles outside this system, mandatory on-boarding onto PSO’s fuel card network would immediately enhance transparency and control.
The real policy gap, therefore, lies not in monitoring capacity but in data-driven governance. Each government vehicle should have a clearly defined fuel entitlement, aligned with usage requirements and periodically reviewed. Deviations from these limits must trigger scrutiny rather than discretionary oversight.
The National Energy Efficiency and Conservation Authority must assume a central role. As the country’s mandated body for energy audits and efficiency oversight, the NEECA is best positioned to undertake technical analysis of fuel consumption patterns, identify inefficiencies and recommend corrective measures.
Ample work has been done in this regard as is evident from the National Energy Efficiency and Conservation Policy and Action Plan 2023-2030. The findings should inform enforcement actions led by the Intelligence Bureau, ensuring that oversight is both analytical and accountable.
However, institutional coordination alone is insufficient without a broad shift in policymaking culture. Too often, conservation measures in Pakistan are announced without clearly articulated outcomes. Targets remain vague, timelines undefined and impact assessments absent. This undermines both credibility and effectiveness of the exercise.
The current crisis demands more than reactive measures. It calls for scenario-based planning. What happens if oil prices rise by another 20 percent? How will this affect core inflation, transport costs and the already vulnerable segments of society living below the poverty line? What contingencies are in place to cushion these shocks?
Pakistan needs a multi-tiered fuel strategy—short-, medium- and long-term. In the short term, strict consumption controls and efficiency enforcement are essential. In the medium term, diversification of energy sources and demand management must take priority. Over the long term, structural reforms—ranging from public transport expansion to energy transition policies—are indispensable.
Fuel conservation is not merely an administrative exercise; it is an economic imperative. Without measurable goals, institutional clarity and a forward-looking strategy, it risks becoming a mere slogan.
At a time when every drop of imported fuel carries a heavy fiscal and social cost, Pakistan can ill afford ambiguity. The tools for effective monitoring exist. What is needed is the discipline to use them—and the vision to plan beyond the immediate crisis.
The writer, an energy and climate change policy expert, is a former managing director of the National Energy Efficiency and Conservation Authority