Pakistan may approach the International Monetary Fund (IMF) for relief on a carbon levy imposed on furnace oil, as the government scrambles to secure energy supplies amid escalating Gulf conflict. In an interview to Aaj News programme News Insight with Amir Zia on Tuesday, Federal Minister for Petroleum Ali Pervaiz Malik said the prime minister has directed the finance ministry to engage the IMF on suspending the carbon levy introduced under the Fund’s Resilience and Sustainability Facility (RSF), arguing that the country may need to use furnace oil domestically instead of exporting it during the ongoing crisis. “When the world is scrambling for fuel, and we are forced to export furnace oil because of the carbon levy, why not explore using it locally?” Malik said in an interview. The minister emphasised that the government remains committed to protecting the IMF programme, “and shun from any sort of adventurism”. “The IMF framework cannot be compromised,” he said. He said that the government may need to review non-essential imports, e.g. autos, and adjust duties or exchange rate measures, in consultation with the IMF, to prevent the external account from spiralling. Remittances from the Gulf region are also being closely monitored, he added. “We will do whatever we can to ensure that the public doesn’t face hardships. However, the public too needs to adopt conservation measures as well,” he said. The minister warned that rising oil prices could significantly strain Pakistan’s external account. Crude is currently trading in the $80–85 per barrel range. If prices climb further to $100 per barrel, the country could face an additional burden of $250 million per month on the external account. If it increases further to $120 per barrel, that burden could swell to $500 million monthly, he said. The government currently holds over 20–30 days of petrol and diesel cover, Malik said, adding that alternative crude cargoes have been arranged from Saudi Arabia’s Red Sea port of Yanbu and from Fujairah in the UAE, which is outside the Strait of Hormuz. He added that the government is also engaging with provincial authorities and enforcement agencies to prevent hoarding and smuggling of petroleum products. “Anyone attempting to benefit from this black swan event will face the full force of the law,” Malik said. He shared that two Pakistan National Shipping Corporation (PNSC) vessels carrying oil are currently stuck in the Strait of Hormuz. He also revealed that petrol import premiums have surged sharply — from around $5 per barrel last week to $17 — implying a potential Rs15–20 per litre increase in domestic petrol prices if the costs are passed through. “If we arrange petrol from alternative sources such as Singapore, the premiums are significantly higher. Eventually, this has to be transmitted through the price mechanism,” he said.