Orders the establishment of a dashboard to monitor the movement of petroleum products in real time
Prime Minister Shehbaz Sharif. Photo: File
The government has asked provincial authorities to implement strict measures against hoarding of petroleum products and ensure uninterrupted fuel supply, while confirming that sufficient reserves are available to meet the country’s needs, according to the prime minister’s office.
According to the Prime Minister’s Office, officials informed a high-level meeting that Pakistan currently has sufficient stocks of petroleum products to meet domestic requirements despite the evolving regional situation.
The statement said authorities were instructed to take strict legal action against individuals and companies involved in hoarding petroleum products. “Any petrol pump involved in creating artificial shortage must be immediately closed, its license revoked and legal proceedings initiated,” it added.
The Oil and Gas Regulatory Authority (Ogra) has previously said it has large stocks of oil to meet the country’s 28-day consumption requirement, following precautionary measures to import excess fuel. However, petroleum pump owners have raised the alarm, claiming that the oil companies have reduced supply and that some private companies have started hoarding petroleum products.
“They are either not supplying the product or have restricted it to such an extent that we are hardly meeting the needs of the public or petrol stations are running dry,” the All Pakistan Petrol Pump Owners Association said in a letter on Wednesday. They had urged the government to immediately intervene and ensure that oil companies consult with stakeholders before imposing any restrictions.
The statement further said that the Prime Minister has directed Petroleum Minister Ali Pervaiz Malik to visit provinces and in collaboration with provincial authorities develop strategies to ensure efficient use and uninterrupted supply of petroleum products to the public.
Read: Government weighs 4-day work week amid fuel fears
The prime minister also directed the establishment of a dashboard to monitor the movement of petroleum products in real time, “This will allow data to be shared with provinces and ensure effective supervision of fuel transportation,” the statement said.
A day earlier, Ogra directed managing directors of oil marketing companies (OMCs) to ensure uninterrupted supply of petroleum products to retail outlets. The regulator warned of strict action against those involved in oil hoarding to pocket money from consumers by creating artificial scarcity of fuel.
“In view of the prevailing geopolitical situation and potential market sensitivities, all oil marketing companies are directed to ensure uninterrupted supply and smooth distribution of motor spirit (petrol) and high speed diesel across their retail network across the country,” Ogra said in a letter sent to the managing directors of OMCs.
Oil for 28 days
Ogra has said it has large stocks of oil to meet the country’s 28-day consumption requirement, following precautionary measures to import excess fuel.
However, due to the US-Israeli attack on Iran, two cargoes of crude oil have been stuck after the closure of the Strait of Hormuz. This channel is 33 km wide and one fifth of the world’s oil passes through it.
The Strait of Hormuz was used to ship an average of 20 million barrels of crude oil, condensate and fuel per day last year. OPEC members such as Saudi Arabia, Iran, the United Arab Emirates, Kuwait and Iraq rely on this shipping route to export most of their crude oil, primarily to Asia.
“We have ample stocks of petrol and diesel to meet the country’s requirements,” officials said, adding that the country could meet consumers’ fuel needs for 28 days.
However, reports have emerged that the government has planned to import oil through the Red Sea from Saudi Arabia and the United Arab Emirates (UAE) due to the closure of the Strait of Hormuz, while switching to a weekly oil price review.
Sources said Express Pakinomist that the government is currently working on various measures to ensure an uninterrupted oil supply in the midst of the US-Israeli war against Iran.
Pakistan imports about one million barrels of oil on a monthly basis, with Saudi Arabia being a major oil exporter to the country. The UAE also exports oil to Pakistan.
Sources said UAE-based firm ADNOC and Saudi Aramco will supply oil to Pakistan by bypassing the Strait of Hormuz. One refinery has already imported a few shipments through the Red Sea. A few oil tankers have reached Pakistan while others are on their way.
Finance Minister unveils fuel savings plan
A special government committee that oversees oil supplies on Thursday discussed introducing a four-day working week with reduced working hours and moving educational institutions to virtual learning as part of possible energy-saving measures.
Despite differences on the pace of action, committee members broadly agreed that the government would not be able to mitigate the impact of rising global energy prices and would have to pass the entire burden on to domestic consumers.
The minister further added that Pakistan has about 28 days of equal stocks of petrol and diesel and 10 days of crude oil. There are also LPG stocks equivalent to 15 days of the country’s requirement and we are closely monitoring the situation, said Aurangzeb, who is also the chairman of the Prime Minister’s committee to monitor petrol prices in the wake of the emerging situation in the region, which was constituted by the Prime Minister and met for the third time on Wednesday.
However, he said the LNG cargoes had been stuck in Qatar and the government was closely monitoring the situation.
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According to a handout issued by the Treasury Department, gasoline committee members reviewed energy-saving measures as part of broader emergency planning aimed at managing demand effectively while maintaining orderly market conditions.
The committee stressed that while supply conditions remain stable, prudent energy use and conservation at all levels will help strengthen national preparedness should international uncertainty continue, the Treasury Department said.
Strait of Hormuz
Vessels have received VHF transmission from Iran’s Revolutionary Guards saying “no ship may pass the Strait of Hormuz”. The Revolutionary Guards said Iranian forces were in “complete control” of the Strait of Hormuz, a vital route for the world’s oil and gas supplies, and any vessel seeking to pass risked damage from missiles or stray drones.
The Strait of Hormuz is also called the energy corridor, as millions of barrels of oil move from one part to the other from here. PHOTO: REUTERS
The strait is the world’s most vital oil export route, connecting the Gulf’s major oil producers, such as Saudi Arabia, Iran, Iraq and the UAE, to the Gulf of Oman and the Arabian Sea.
About 20% of global oil, including from producers Saudi Arabia, the United Arab Emirates, Iraq, Kuwait and Iran, passes through Hormuz, along with large quantities of liquefied natural gas from Qatar.
Tehran has for years threatened to block the narrow waterway in retaliation for any attack on the Islamic Republic.
Fourteen LNG tankers have shown signs of slowing, U-turning or stopping in or around the strait, said Laura Page of consultancy Kpler, adding that the number is likely to rise, posing a risk to Qatar’s LNG exports.
