Pakistan is grappling with limited petroleum reserves, holding crude oil stocks for just 11 days, sparking worries about energy security amidst disruptions from the ongoing Middle East conflict. The country’s diesel reserves cover 21 days, petrol 27 days, liquefied petroleum gas (LPG) nine days, and jet fuel 14 days, as per The Express Tribune. With nearly 70% of petroleum imports originating from the Middle East, disruptions in key shipping routes and supply chains have been observed.
Officials are engaging in discussions with Iran to secure permission for oil shipments through the Strait of Hormuz, potentially enabling four vessels to transport crude cargoes if approved. There are concerns about a looming gas crisis post-April 14 due to disruptions in liquefied natural gas (LNG) supplies, with only two out of eight expected LNG cargoes reaching Pakistan in March.
The ongoing conflict has triggered a surge in global oil prices, leading to a notable increase in high-speed diesel prices and petrol costs. Shipment timelines have been affected, with deliveries via the Red Sea now taking around 12 days compared to the usual four to five days. Authorities are contemplating prioritizing gas supply for domestic consumers while reducing supply to industries and commercial users to manage shortages.
To alleviate the situation, the government plans to offer a subsidy of Rs 23 billion to approximately 30 million motorcycle and rickshaw owners, funded through savings from austerity measures. Daily reviews of petroleum stocks have been initiated to closely monitor the situation, ensuring adequate fuel availability through mid-April, according to officials.
