ISLAMABAD — Pakistan’s strategic petroleum reserves are critically low, with crude oil stocks sufficient for only 11 days, diesel for 21 days, and petrol for 27 days, the Senate Standing Committee on Petroleum was informed Monday amid growing concerns over supply disruptions caused by the ongoing conflict in the Middle East.
The briefing painted a stark picture of the country’s energy vulnerability, with LPG reserves at just nine days and jet fuel (JP-1) at 14 days, as the war between Iran and the US-Israel alliance continues to roil global shipping routes and drive up prices.
Imports Under Threat
Secretary Petroleum told the committee that nearly 70 per cent of Pakistan’s petroleum products are imported from the Middle East, making the country highly susceptible to disruptions in the region. The conflict has already affected shipping routes, with cargoes that normally take four to five days to arrive now taking approximately 12 days if routed through the Red Sea.
The price impact has been severe. High-speed diesel has surged from $88 to $187 per barrel, while petrol prices have jumped from $74 to $130. Crude oil, which stood at $72 per barrel before the conflict, rose to $88 on the second day of fighting and has now climbed to $115.
Strait of Hormuz Negotiations
In a bid to secure supply lines, the official said Pakistan is in talks with Iran to secure permission for oil shipments to pass through the Strait of Hormuz. If granted, four Pakistani vessels could transport oil cargoes through the strategic waterway, potentially easing some supply pressures.
LNG Crisis Looms
The committee was also warned of an impending gas shortage. According to the secretary petroleum, supplies from Qatar have been completely suspended. Of the eight LNG cargoes expected in March, only two reached Pakistan, with six failing to arrive due to the war. Similarly, of the six cargoes expected in April, three may also fail to materialize.
Officials warned that Pakistan could face a severe gas shortage after April 14 under current circumstances. Gas authorities briefed the committee on an emergency supply plan, noting that overall gas supply is expected to fall from 683 mmcfd to 672 mmcfd.
To manage shortages, the government is considering increasing gas supply for domestic consumers while reducing supply to the commercial sector, process industries, and captive power plants.
Officials added that Pakistan has an agreement with a company in Azerbaijan to import LNG if demand rises, though LNG from that source would be nearly three times more expensive.
Relief for Motorcyclists and Rickshaw Owners
Amid the grim supply outlook, the government announced a Rs23 billion subsidy for motorcycle and rickshaw owners, funded by savings generated under its austerity policy. The subsidy will be extended to approximately 30 million beneficiaries, using data from the Benazir Income Support Programme for distribution.
Officials from Ogra and the petroleum division have begun working on the subsidy mechanism, drawing comparisons to relief programmes introduced during the Covid-19 pandemic.
Committee members questioned the source of the Rs23 billion and pressed for details on which austerity measures generated the savings, urging that any financial benefit should flow to the public rather than companies. Officials responded that various cost-saving measures had been implemented under the prime minister’s directives.
Temporary Import Relaxation
The secretary petroleum also informed the committee that temporary permission had been granted to import oil below the Euro-5 quality standard as the government attempts to optimize the use of existing reserves and maintain supply amid the crisis.
Government Monitoring Intensifies
Separately, the government has decided to conduct daily reviews of petroleum reserves to closely monitor the energy situation. A committee tasked with monitoring petrol prices was informed that Pakistan remains “adequately positioned in terms of fuel availability,” with March requirements fully secured and supply coverage available up to mid-April under current cargo planning.
According to a statement from the Ministry of Finance, the committee reviewed national inventory levels, import arrangements, and supply chain logistics. Officials told the meeting that the country has “comfortable inventories of crude oil and key petroleum products for March, with sufficient planning in place to ensure continued availability during April.”
The meeting, chaired by Finance Minister Muhammad Aurangzeb, was part of the government’s daily review of the energy sector amid Middle East tensions. Procurement patterns and maritime logistics were examined, with the committee stressing the need to diversify sources of petroleum imports to strengthen Pakistan’s energy supply chain.
Officials said procurement strategies were already shifting towards greater diversification to reduce reliance on any single supply corridor.
No Need for Panic, Says Finance Minister
Finance Minister Aurangzeb assured that the government remains “fully focused on ensuring uninterrupted availability of petroleum products across the country,” adding that the “current stock position and supply outlook remain stable.”
He stressed that “there is no basis for panic buying or unnecessary stockpiling of fuel,” and directed authorities, in coordination with Ogra and provincial governments, to closely monitor market activity and stock levels to prevent hoarding.
“It was emphasised that any attempts to create artificial shortages or disrupt normal supply would be dealt with strictly in accordance with the law,” the statement said.
Participants in the meeting included Petroleum Minister Ali Pervaiz Malik, Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry, State Bank Governor Jameel Ahmad, and other senior officials.
