ISLAMABAD: Pakistan is currently maintaining petrol reserves that can sustain the country for 27 days, while diesel stocks are sufficient for approximately 21 days, Secretary Petroleum Hamed Yaqoob Sheikh informed the Senate Standing Committee on Petroleum during a detailed briefing on Monday. This update comes amid escalating geopolitical tensions in the Middle East, which have significantly impacted global oil markets and disrupted supply chains crucial to Pakistan’s energy needs.
The recent surge in global oil prices—rising by nearly 40 to 50 percent—has been triggered by Iran’s aggressive actions in the Gulf region. Tehran’s decision to block a vital waterway and target energy and shipping infrastructure is a direct retaliation against ongoing US-Israeli military operations against the Islamic Republic. These developments have sent shockwaves through international energy markets, creating uncertainty and volatility that Pakistan, heavily reliant on Middle Eastern oil imports, is now grappling with.
During the committee meeting chaired by Senator Manzoor Ahmed, Secretary Sheikh elaborated on the critical situation, highlighting that approximately 70 percent of Pakistan’s oil imports originate from the Middle East. This heavy dependence makes the country particularly vulnerable to supply disruptions stemming from regional conflicts. Besides petrol and diesel, the country’s crude oil reserves are estimated to last for 11 days, while liquefied petroleum gas (LPG) and liquefied natural gas (LNG) stocks are sufficient for about nine days. Additionally, Pakistan holds jet fuel (JP-1) reserves that can support aviation needs for roughly two weeks.
Senator Manzoor Ahmed raised concerns about the recent increase in fuel prices, questioning why prices have surged despite the country previously holding petrol reserves adequate for 28 days. In response, Secretary Sheikh explained that the steep rise in international oil prices is the primary driver behind the price adjustments. For instance, the cost of high-speed diesel on the global market has jumped from $88 to $187 per barrel, while petrol prices have escalated from $74 to $130 per barrel. These sharp increases have placed significant pressure on Pakistan’s fuel pricing structure.
Furthermore, the secretary pointed out that oil shipments from Arab countries typically reach Pakistan within four to five days. However, the current geopolitical instability has caused delays and interruptions in shipping schedules, further complicating the supply situation. To mitigate the impact of these disruptions, the government has temporarily permitted the import of fuel that does not meet the Euro-5 environmental standards, prioritizing availability over quality to ensure that the country’s energy demands are met during this challenging period.
In addition to these measures, a ministerial committee established by Prime Minister Shehbaz Sharif is actively monitoring the petroleum supply landscape on a daily basis. This committee is tasked with assessing the evolving situation and recommending strategies to maintain fuel availability and manage price fluctuations. Despite the international price hikes, Secretary Sheikh reassured the committee that petroleum products remain accessible across Pakistan, preventing any immediate shortages for consumers.
On the pricing front, the government recently raised the price of kerosene oil by Rs39.20 per litre while keeping petrol prices steady for the week ending March 20. This adjustment has made kerosene—often referred to as the fuel of the economically disadvantaged—the most expensive consumer fuel product in the country, now priced at Rs358 per litre. Since March 7, kerosene has experienced the highest price increase among all fuel types, reflecting the broader inflationary pressures in the energy sector.
To alleviate the burden on consumers and stabilize the market, the Ministry of Energy confirmed that the government will provide a price differential subsidy amounting to Rs23 billion. This subsidy will be paid to oil marketing companies (OMCs) to help keep petrol prices unchanged despite the soaring costs in the international oil market. Such fiscal interventions underscore the government’s commitment to cushioning the impact of global price shocks on the Pakistani public during these uncertain times.
