Orders the creation of a dashboard to monitor the movement of petroleum products in real time
Prime Minister Shehbaz Sharif. Photo: Archive
The government has ordered provincial authorities to take strict action against hoarders of petroleum products and ensure uninterrupted supply of fuel, while confirming that adequate 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 needs despite the evolving regional situation.
The statement said authorities were instructed to take strict legal action against people and companies involved in hoarding of petroleum products. “Any gasoline pump involved in creating an artificial shortage must be immediately closed, its license revoked and legal proceedings initiated,” he added.
The Oil and Gas Regulatory Authority (Ogra) has previously said that they have large oil reserves to cover the country’s consumption needs for 28 days, following preventive measures to import surplus fuel. However, oil pump owners have been sounding the alarm, alleging that oil companies have reduced supply and that some private companies have begun hoarding petroleum products.
“Either they do not provide the product or they have limited it to such an extent that we can barely meet the needs of the public, or the filling stations run dry,” the Pakistan Petrol Pump Owners Association said in a letter on Wednesday. They had urged the government to intervene immediately 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 the provinces and in collaboration with the provincial authorities, develop strategies to ensure efficient use and uninterrupted supply of petroleum products to the public.
Read: Government evaluates four-day work week due to fuel fears
The prime minister also ordered the establishment of a panel to monitor the movement of petroleum products in real time. “This will allow data to be shared with the provinces and ensure effective supervision of fuel transportation,” the statement said.
A day earlier, Ogra directed CEOs 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 consumers’ money by creating artificial fuel shortages.
“In view of the prevailing geopolitical situation and possible market sensitivities, all oil marketing companies must ensure uninterrupted supply and smooth distribution of motor gasoline (petrol) and high-speed diesel through their retail networks across the country,” Ogra said in a letter sent to OMC CEOs.
Oil for 28 days
Ogra has said that they have large oil reserves to cover the country’s consumption needs for 28 days, after preventive measures to import surplus fuel.
However, due to the attack by the United States and Israel against Iran, two shipments of crude oil were trapped after the closure of the Strait of Hormuz. This canal is 33 kilometers (21 miles) wide and a fifth of the world’s oil passes through it.
Last year, the Strait of Hormuz was used to transport an average of 20 million barrels of crude oil, condensate and fuel per day. OPEC members such as Saudi Arabia, Iran, the United Arab Emirates, Kuwait and Iraq depend on this sea route to export most of their crude oil, mainly to Asia.
“We have ample stocks of gasoline and diesel to meet the country’s needs,” officials said, adding that the country could meet consumers’ fuel needs for 28 days.
However, reports have emerged that the government plans 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 also switching to a weekly oil price review mechanism.
Sources said The express PAkGazette that the government is currently working on several measures to ensure uninterrupted oil supplies amid the US-Israel war against Iran.
Pakistan imports around one million barrels of oil monthly, with Saudi Arabia being a key oil exporter to the country. The United Arab Emirates also exports oil to Pakistan.
Sources said UAE-based ADNOC and Saudi Aramco will supply oil to Pakistan bypassing the Strait of Hormuz. One refinery has already imported some shipments through the Red Sea. A couple of oil tankers have arrived in Pakistan, while others are on their way.
Finance Minister presents fuel conservation plan
A special government committee overseeing oil supplies on Thursday discussed introducing a four-day work week with reduced working hours and shifting educational institutions to virtual learning as part of possible energy conservation measures.
Despite differences over the pace of action, committee members broadly agreed that the government would not be able to cushion the impact of rising global energy prices and would have to shift the entire burden to domestic consumers.
The minister further added that Pakistan has reserves equivalent to about 28 days of gasoline and diesel and 10 days of crude oil. There are also stocks of LPG equivalent to 15 days of the country’s needs, and we are closely monitoring the situation, said Aurangzeb, who is also chairman of the Prime Minister’s Committee to monitor oil 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 LNG cargoes had been stranded in Qatar and the government was closely monitoring the situation.
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According to a handout issued by the Ministry of Finance, members of the petroleum committee reviewed energy conservation measures as part of a broader contingency plan aimed at managing demand efficiently while maintaining orderly market conditions.
The committee emphasized that while supply conditions remain stable, prudent use and conservation of energy at all levels would help strengthen national preparedness in case international uncertainties persist, the Finance Ministry said.
Strait of Hormuz
The ships have been receiving VHF transmissions from Iran’s Revolutionary Guard saying that “no ship can pass the Strait of Hormuz.” The Revolutionary Guard said Iranian forces were in “full control” of the Strait of Hormuz, a vital route for global oil and gas supplies, and any ships attempting to pass risked damage from stray missiles or drones.
The Strait of Hormuz is also known as an energy corridor since millions of barrels of oil move from one part to another from here. PHOTO: REUTERS
The strait is the world’s most important oil export route, connecting the Gulf’s largest oil producers, such as Saudi Arabia, Iran, Iraq and the United Arab Emirates, with the Gulf of Oman and the Arabian Sea.
About 20% of the world’s oil, including that from producers Saudi Arabia, the United Arab Emirates, Iraq, Kuwait and Iran, passes through Hormuz along with large volumes of liquefied natural gas from Qatar.
Tehran has been threatening for years 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 will likely increase, posing risks for Qatar’s LNG exports.
