A view shows oil pump jacks outside Almetyevsk, in the Republic of Tatarstan, Russia July 14, 2025. Photo: Reuters
ISLAMABAD:
Pakistan currently has crude oil reserves sufficient for 11 days, diesel for 21 days, petrol for 27 days, LPG for nine days and jet fuel (JP-1) for 14 days, the Petroleum Secretary told the Senate Standing Committee on Petroleum on Monday amid growing concerns over supply disruptions caused by conflict in the Middle East.
Briefing the committee, the official said Pakistan was in talks with Iran to secure permission for oil shipments to pass through the Strait of Hormuz. If the permission is granted, four Pakistani ships can transport oil cargo through the route.
He also warned that Pakistan could face a severe gas shortage after April 14 due to disrupted LNG cargo supplies. Meanwhile, the government has decided to provide a subsidy of Rs 23 billion to motorcycle and rickshaw owners using savings generated under its austerity policy.
The Senate Standing Committee on Petroleum met under the chairmanship of Senator Manzoor Ahmed and was briefed on the regional situation and its impact on Pakistan’s energy supply.
The petroleum secretary said that nearly 70 percent of Pakistan’s petroleum products were imported from the Middle East. However, the ongoing conflict has affected shipping routes and supply chains.
He told the committee the price of high-speed diesel had risen from $88 to $187, while petrol prices had risen from $74 to $130. Normally, oil shipments from Arab countries reach Pakistan within four to five days, but cargoes via the Red Sea route now take about 12 days.
The official said the country currently had reserves of crude oil for 11 days, diesel for 21 days, petrol for 27 days, LPG for nine days and JP-1 fuel for 14 days. The government tried to optimize the use of existing reserves, while also granting temporary permission to import oil below the Euro-5 quality standard.
According to the petroleum secretary, crude oil prices were at 72 dollars per barrel. barrel before the war, but rose to $88 on the second day of the conflict and has now risen to $115 per barrel. barrel. Negotiations with Iran continue to allow oil shipments through the Strait of Hormuz, which could enable four Pakistani ships to carry crude cargoes.
The committee was also informed that gas supplies from Qatar had been completely suspended. Of the eight LNG cargoes expected in March, only two reached Pakistan, while six failed to arrive due to the war. Similarly, three of the six cargoes expected in April may also be missed.
Under the current circumstances, officials warned that Pakistan could face a severe gas shortage after April 14.
The gas authorities also briefed the committee on an emergency supply plan, saying total gas supply was expected to drop from 683 mmcfd to 672 mmcfd. To manage the shortage, the government is considering increasing gas supply to household consumers while reducing supply to the commercial sector, process industries and tied power plants.
Officials added that Pakistan had an agreement with a company in Azerbaijan to import LNG if demand picks up, although LNG from that source would be nearly three times more expensive.
The Petroleum Secretary further told the committee that the government had decided to provide a subsidy of Rs 23 billion from savings generated under its austerity policy. The subsidy will be extended to around 30 million motorcycle and rickshaw owners and will be distributed to eligible beneficiaries using data from the Benazir Income Support Programme.
Officials from the Oil and Gas Regulatory Authority (Ogra) and the petroleum division have started working on the subsidy mechanism. They said savings from austerity measures would be used to fund the grant, similar to relief programs introduced during the Covid-19 pandemic.
Committee members questioned where the Rs23 billion subsidy would come from and asked what measures had generated the savings, calling for any financial benefit to go to the public rather than businesses.
Officials responded that various cost-cutting measures had been implemented under the Prime Minister’s directives.
Government monitoring of oil stocks
Separately, the government has decided to carry out a daily review of oil reserves to closely monitor the energy situation.
A committee tasked with monitoring petrol prices was informed that Pakistan remained “adequately positioned in terms of fuel availability”, with March requirements fully secured and supply coverage available until mid-April under the current cargo planning.
According to a statement from the Ministry of Finance, the committee reviewed the national inventory of crude oil and refined oil products, import arrangements and logistics in the supply chain.
Officials told the meeting that the country had “comfortable stocks of crude oil and key petroleum products for March, with sufficient planning in place to ensure continued availability during April”. Work is also underway to expand coverage towards the end of April.
The meeting, chaired by Finance Minister Muhammad Aurangzeb in the Finance Department, was part of the government’s daily review of the energy sector amid tensions in the Middle East.
During the session, procurement patterns and maritime logistics were also examined, with the committee stressing the need to diversify the sources of oil imports to strengthen Pakistan’s energy supply chain.
Officials said procurement strategies were already moving toward greater diversification to reduce reliance on a single supply corridor.
Finance Minister Aurangzeb assured that the government remained “fully focused on ensuring uninterrupted availability of petroleum products across the country”, adding that “the current stock position and supply outlook remain stable”.
He emphasized that “there is no basis for panic buying or unnecessary stockpiling of fuel”.
Authorities, in coordination with Ogra and provincial governments, were asked to closely monitor market activity and stock levels to prevent hoarding.
“It was emphasized that any attempt to create artificial shortage or disrupt normal supply will be dealt with strictly in accordance with the law,” the statement said.
Participants in the meeting included Petroleum Minister Ali Pervaiz Malik, Minister for Maritime Affairs, Muhammad Junaid Anwar Chaudhry, Governor State Bank of Pakistan, Jameel Ahmad and other senior officials.
