Pakistan recorded a 24 percent increase in fuel consumption during March compared to February, despite multiple government-imposed restrictions aimed at reducing petrol usage.
The data, covering fuel usage until March 30, showed a significant rise in demand, raising questions about the effectiveness of recent conservation policies introduced by the government.
Authorities had implemented several measures, including reduced working days, closure of educational institutions, and lowering motorway speed limits from 120 KMH to 100.
These steps were designed to reduce commuting and overall fuel demand, as the country seeks to limit pressure on foreign exchange reserves caused by high oil imports.
Despite these measures, fuel consumption rose sharply, indicating that restrictions on movement and transport activity did not translate into lower petrol usage during the month.
Renowned economist Ashraf Malkham said the increase remained significant even after considering the longer duration of March compared to February in the consumption data.
Ashraf Malkham suggested that the rise may not reflect increased daily usage but instead indicate large-scale fuel hoarding by sectors with storage and financial capacity.
He noted that international oil prices remain significantly lower than domestic rates, with an estimated gap of around 100 rupees creating incentives for stockpiling fuel.
According to the analysis, such hoarding is likely limited to industrial players and oil marketing companies, as individual consumers generally lack the resources to store fuel.
Malkham questioned the absence of government response, including why no high-level meeting had been convened to address the unexpected increase in fuel consumption.
He also raised concerns about enforcement, asking whether authorities were monitoring industrial activity and fuel storage practices to prevent potential misuse of government conservation policies.
The economist cited Iran as a regional example, noting no reported cases of large-scale fuel hoarding or artificial price manipulation under similar economic pressures.
He said the current situation suggested possible gaps in policy enforcement, with restrictions affecting the public while certain sectors may benefit from price differences and supply conditions.
