ISLAMABAD – Millions of Pakistanis are being squeezed by unaffordable petrol prices, and now as fuel costs climb again to near record high, the government is weighing 3-day weekend, that could give millions a three-day weekend.
With petrol hitting Rs380, potentially going to Rs400, the government is working on possible 3-day weekend to axe fuel consumption. The proposal could fundamentally change the weekly routine for millions of workers and students, with government offices, private workplaces, schools, colleges and universities potentially operating for four days instead of five.
The idea is part of a broader push to revive fuel-conservation and austerity measures as renewed turmoil in the Middle East continues to put pressure on global oil supplies and prices. Under the proposed arrangement, however, the country would not necessarily shut down every institution for three consecutive days.
The savings could extend beyond fuel. Officials are also examining possible reductions in electricity consumption, official transport expenditure and other administrative costs associated with keeping offices and institutions operational throughout the week.
Relevant departments have reportedly been asked to work on revised schedules, but the four-day system has not yet been finalised and would require a detailed implementation plan and formal notification before becoming policy.
On Monday, the government jacked up petrol by Rs4.42 per litre and Diesel by Rs6.10 per litre, with the new prices taking effect from September 15. That puts petrol at Rs380.24 per litre and diesel at Rs409.42 per litre. The government is also collecting around Rs114 per litre in taxes and duties on petrol and approximately Rs100 per litre on diesel.
Petrol had been around Rs266 per litre in the first week of March before beginning its steep climb, while diesel had stood near Rs281 per litre before the sharp escalation that followed the outbreak of the US-Iran conflict on February 28.
While considering ways to make people consume less fuel, the government is simultaneously trying to reduce the burden on smaller vehicle owners. Prime Minister Shehbaz Sharif has announced a Rs100-per-litre petrol relief scheme for motorcycles, rickshaws, Qingqi vehicles and cars with engines of up to 800cc.
Under scheme, two- and three-wheeler users are eligible for relief on 20 litres per month, while owners of vehicles up to 800cc can receive the discount on 30 litres per month. Economic Coordination Committee has approved the package, with the relief restricted to non-commercial users and one vehicle per owner.
The government has also introduced a digital mechanism through which eligible users can obtain fuel tokens, with motorcycle users able to claim the relief weekly and small-car users at longer intervals. So while one policy is attempting to make petrol cheaper for vulnerable users, the other is aimed at making the country consume less of it.
Pakistan has already moved toward much faster fuel-pricing system. Petroleum Minister Ali Pervaiz Malik announced in July that fuel prices would be determined on a daily basis, citing international market volatility following renewed hostilities involving Iran and the US. The government had also introduced conservation measures earlier in the year amid fears that disruptions to oil supply routes could create shortages and drive prices even higher.
Petrol consumption in Pakistan is heavily linked to everyday mobility. Motorcycles, cars, rickshaws and other small vehicles dominate petrol demand among ordinary consumers. Cutting even one regular commuting day from the weekly routine could therefore reduce fuel use on a significant scale. For the government, the potential benefit goes further.
Global Oil prices are rising sharply. Brent crude reached about $108 per barrel, its highest level in nearly four months. U.S. crude also crossed $103 per barrel, up more than 20% compared with a month ago.
Iran-backed Houthi fighters are battling forces supported by Saudi Arabia. Houthis captured more territory, giving them greater ability to threaten the Red Sea, an important route for Saudi oil shipments. If fighting disrupts oil shipments through the Red Sea, the global supply of oil could become tighter. Traders then fear shortages and bid up oil prices.
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