A view shows the jacks of the oil pump on the outskirts of Almetyevsk, in the Republic of Tatarstan, Russia, on July 14, 2025. Photo: Reuters
ISLAMABAD:
Pakistan currently has 11 days’ worth of crude oil reserves, 21 days’ worth of diesel, 27 days’ worth of gasoline, nine days’ worth of LPG and 14 days’ worth of jet fuel (JP-1), the Secretary of Petroleum informed the Senate Standing Committee on Petroleum on Monday amid growing concerns over supply disruptions caused by the conflict in the Middle East.
Briefing the committee, the official said Pakistan was in talks with Iran to obtain permission for oil shipments to pass through the Strait of Hormuz. If permission is granted, four Pakistani vessels could transport oil cargoes through the route.
He also warned that Pakistan could face severe gas shortage after April 14 due to disruption of LNG cargo supply. Meanwhile, the government has decided to provide a subsidy of Rs 23 billion to motorcycle and rickshaw owners using the 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 almost 70 per cent of Pakistan’s petroleum products were imported from the Middle East. However, the current conflict has affected sea routes and supply chains.
He told the committee that the price of high-speed diesel had risen from $88 to $187, while gasoline prices had risen from $74 to $130. Normally, oil shipments from Arab countries reach Pakistan within four to five days, but shipments routed through the Red Sea now take about 12 days.
The official said that currently the country has reserves of crude oil for 11 days, diesel for 21 days, gasoline for 27 days, LPG for nine days and JP-1 fuel for 14 days. The government was trying to optimize the use of existing reserves, while temporary permission had also been granted to import oil below the Euro-5 quality standard.
According to the Secretary of Petroleum, crude oil prices stood at $72 per barrel before the war, but rose to $88 on the second day of the conflict and have now risen to $115 per barrel. Negotiations continue with Iran to allow oil shipments through the Strait of Hormuz, which could allow four Pakistani vessels to carry cargoes of crude.
The committee was also informed that gas supplies from Qatar had been completely suspended. Of the eight LNG cargoes scheduled for March, only two reached Pakistan, while six did not arrive due to the war. Likewise, of the six shipments scheduled for April, three may also not arrive.
Under current circumstances, officials have warned that Pakistan could face severe gas shortages after April 14.
Gas authorities also briefed the committee on an emergency supply plan, saying total gas supply was expected to fall from 683 mmcfd to 672 mmcfd. To manage the shortage, the government is considering increasing gas supply to domestic consumers while reducing supply to the commercial sector, process industries and captive power plants.
The officials added that Pakistan had an agreement with an Azerbaijani company to import LNG if demand increases, although LNG from that source would be almost 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 the 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 subsidy, similar to aid programs introduced during the Covid-19 pandemic.
Committee members asked where the 23 billion rupee subsidy would come from and what measures had generated the savings, urging that any financial benefits should go to the public rather than businesses.
Officials responded that several cost-saving measures had been implemented under the prime minister’s directives.
The government monitors oil stocks
On the other hand, the government has decided to carry out a daily review of oil reserves to closely monitor the energy situation.
A committee tasked with monitoring oil prices was informed that Pakistan remained “in an adequate position in terms of fuel availability”, with March needs fully secured and supply coverage available until mid-April based on current loading planning.
According to a statement issued by the Ministry of Finance, the committee reviewed the national inventory of crude oil and refined petroleum products, import agreements and supply chain logistics.
Officials told the meeting that the country had “comfortable inventories of crude oil and key petroleum products for March, with sufficient planning to ensure continued availability through April.” Efforts are also underway to expand coverage towards the end of April.
The meeting, chaired by Finance Minister Muhammad Aurangzeb at the Finance Division, 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 emphasizing the need to diversify sources of oil imports to strengthen Pakistan’s energy supply chain.
Officials said procurement strategies were already shifting toward greater diversification to reduce reliance on a single supply corridor.
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 situation and supply prospects remain stable.”
He stressed that “there is no basis for panic buying or unnecessary fuel storage.”
Authorities, in coordination with Ogra and provincial governments, were ordered to closely monitor market activity and stock levels to prevent hoarding.
“It was highlighted that any attempt to create artificial shortages or disrupt normal supply will be dealt with strictly in accordance with the law,” the statement said.
Among the participants in the meeting were Petroleum Minister Ali Pervaiz Malik, Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry, State Bank of Pakistan Governor Jameel Ahmad and other senior officials.
