ISLAMABAD: Rising tensions in the Middle East have disrupted petroleum supply routes, prompting the government to rely on existing reserves while taking emergency measures to ensure availability of fuel across the country, the Senate Standing Committee on Petroleum was told on Monday.
Briefing the committee, the Secretary Petroleum said that about 70 percent of Pakistan’s petroleum imports originate from the Middle East, and the ongoing regional tensions have affected supply as movement of oil tankers has been halted.
He said the situation in the international market has caused a sharp surge in petroleum product prices. According to the briefing, the price of high-speed diesel increased from $88 to $187, while petrol rose from $74 to $130.
Pakistan normally receives oil shipments from Arab countries within four to five days, but disruptions to traditional routes have complicated logistics.
The Secretary Petroleum said the government is making efforts to increase utilisation of existing petroleum reserves to manage the situation. As an emergency measure, imports of petroleum products below Euro-5 standards have been temporarily allowed.
He further informed the committee that a ministerial committee constituted by the Prime Minister is reviewing the petroleum situation on a daily basis.
Despite the surge in global prices, petrol remains available across the country, he said, adding that the government’s priority is to ensure uninterrupted supply.
The committee was told that crude oil reserves are sufficient for 11 days, while diesel stocks can last for 21 days and petrol reserves for 27 days. Meanwhile, LPG reserves are available for nine days and JP-1 reserves for 14 days.
During the meeting, Senator Manzoor Ahmed questioned the increase in petroleum prices, saying the country had reserves for around 28 days and alleged that the benefit had been passed on to oil marketing companies.
Responding to the criticism, the Secretary Petroleum said the price adjustment was aimed at preventing hoarding of petroleum products, adding that it did not benefit oil marketing companies.
He said the price increase encouraged companies to continue imports, which helped ensure the availability of fuel in the market.
OGRA officials informed the committee that diesel prices had increased by around 100 percent, while petrol prices rose by nearly 70 percent due to global market pressures.
The Secretary Petroleum also said the government is considering a relief package for motorcycle and rickshaw users and has adopted austerity measures to provide relief to the public.
The committee was further told that global oil markets are witnessing significant volatility amid geopolitical tensions. According to OGRA officials, the global price of diesel has reached about $189 per barrel, while petrol is close to $130 per barrel.
Meanwhile, Brent crude is trading around $103 per barrel, while Dubai crude has reached $146 per barrel.
Officials said global concerns over Iran have increased following recent US actions, adding that Iran has warned oil prices could rise to $200 per barrel amid escalating tensions.
The Secretary Petroleum said Pakistan’s oil shipments normally pass through the Strait of Hormuz, enabling deliveries within four days, but shipments routed through the Red Sea take up to 12 days.
He cautioned that any attack on major oil refineries in Saudi Arabia could disrupt global production.
The committee was also informed that under the IMF programme the government cannot provide petroleum subsidies, and therefore petroleum product prices will now be reviewed on a weekly basis.
According to the Secretary Petroleum, crude oil prices were around $72 per barrel before the conflict, which rose to $88 on the second day of the war and have now reached $115 per barrel.
He added that two tankers carrying petrol and diesel have recently arrived in Pakistan.
Senator Sadia Abbasi noted that many countries are purchasing Russian oil. The Secretary Petroleum responded that Pakistan is also exploring the possibility of importing oil from Russia.
He said negotiations are underway with Iran to allow Pakistani oil shipments through the Strait of Hormuz, adding that four Pakistani ships are already waiting for permission.
Gas crisis warning
The committee was also briefed on the deteriorating gas supply situation.
Director General Liquefied Gas informed members that gas supply from Qatar has been completely suspended, forcing authorities to increase domestic gas production.
He said that out of eight LNG cargoes scheduled for March, only two have arrived, while six could not reach Pakistan due to the war.
Similarly, three out of six LNG cargoes scheduled for April are also expected to be cancelled.
Officials warned that Pakistan could face a severe gas shortage after April 14 if supplies are not restored.
Under an emergency gas management plan for March 2026, system gas supply will be reduced from 655 MMCFD to 642 MMCFD, while RLNG supply will increase slightly from 28 to 30 MMCFD.
Overall gas supply is expected to decline from 683 MMCFD to 672 MMCFD.
According to the sectoral allocation plan, domestic consumers will receive increased supply from 399 to 420 MMCFD, while supplies to the commercial sector and process industries will be reduced.
Gas supply to captive power plants will also be cut from 82 to 70 MMCFD, while allocations to fertiliser plants and the power sector will increase slightly.
Officials also informed the committee that Pakistan has a contingency agreement with an Azerbaijani company for LNG supplies, but warned that LNG from Azerbaijan would be nearly three times more expensive.
The committee was told that the government is closely monitoring the situation amid continued uncertainty in global energy markets.
