Pakistan has diesel reserves for 21 days, petrol for 27 days, NA panel informed

ISLAMABAD:

The Committee to Monitor Petrol Prices was informed on Monday that the country had adequate fuel availability for March and coverage was available until mid-April based on current cargo planning and supply arrangements with efforts underway to extend it further towards the end of next month.

Earlier this month, the government sharply increased diesel and petrol prices by Rs55 per litre or 20% — due to the ongoing US-Israel and Iran war, which has disrupted supply chains and pushed crude oil prices to two years’ highest level. The increase in petrol prices was more than the surge in the international market, as the government chose to collect more than required money from motorcyclists and car owners to subsidise the use of diesel mostly by the public transport and the agriculture sector.

However, on Friday, Prime Minister Shehbaz Sharif decided not to increase the prices of petroleum products this time, honouring his promise to the public despite a further rise in international oil prices.

Read More: Iran FM says ready to take war with Israel, US ‘as far as’ necessary

According to a statement from the fianance ministry today, the petrol price monitoring committee met today at the Finance Division under Finance Minister Muhammad Aurangzeb, as part of its ongoing daily review of developments in the energy sector in light of evolving regional conditions.

The meeting was attended by Petroleum Minister Ali Pervaiz Malik, Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry, the governor of the State Bank of Pakistan, and federal secretaries and senior officials from the concerned ministries, divisions and regulatory authorities.

The committee members undertook a comprehensive review of petroleum product stock positions across the country and were briefed in detail on the current national inventory of crude oil and refined petroleum products, ongoing import arrangements and supply chain logistics.

“The committee was informed that the country remains adequately positioned in terms of fuel availability, with March requirements fully secured. It was further noted that, based on current cargo planning and supply arrangements, coverage is available up to mid-April and efforts are underway to extend coverage further towards the end of April,” the finance ministry statement read.

It further stated that overall stock levels and scheduled imports indicated that the country maintained comfortable inventories of crude oil and key petroleum products for March, with sufficient planning in place to ensure continued availability during April.

The meeting also reviewed procurement patterns and maritime logistics in the context of ongoing regional developments. In this regard, the committee emphasised the importance of further diversifying sources of supply to enhance resilience of the national energy supply chain.

The meeting’s members were informed that procurement strategies are already moving towards greater diversification, with efforts underway to broaden sourcing from the international market and reduce reliance on any single corridor, thereby strengthening Pakistan’s overall energy security.

Speaking during the meeting, the finance minister highlighted that the government remained fully focused on ensuring uninterrupted availability of petroleum products across the country. He noted that the current stock position and supply outlook remained stable and that, based on the reports presented, there was no basis for panic buying or unnecessary stockpiling of fuel.

The meeting directed the relevant authorities, in coordination with OGRA and the provincial governments, to closely monitor stock levels and market activity to check any incidence of hoarding. It was emphasised that any attempts to create artificial shortages or disrupt normal supply would be dealt with strictly in accordance with the law.

Reaffirming the government’s commitment to maintaining stability in the energy market, the finance minister directed all concerned ministries, regulators and agencies to maintain close coordination and continue rigorous monitoring of stock levels and supply flows so that the fuel supply chain remained smooth and public confidence was maintained through timely and accurate information.

The committee will continue to meet on a daily basis to review petroleum stocks, import flows, market conditions and supply chain developments to ensure uninterrupted availability of fuel across the country.

Earlier today, Petroleum Secretary Hamed Yaqoob Sheikh said the country currently had diesel reserves sufficient for 21 days and petrol stocks for 27 days.

The petroleum secretary briefed the Senate Standing Committee on Petroleum today over the country’s fuel reserves and the impact of rising tensions in the Middle East on global energy supplies.

Sheikh said the country also had liquefied petroleum gas (LPG) reserves for nine days and JP-1 aviation fuel stocks for 14 days. The petroleum secretary said that around 70% of Pakistan’s petroleum supplies came from the Middle East and the ongoing regional tensions had disrupted shipments, with vessel movement currently affected.

The committee’s members were told that the price of high-speed diesel had surged from $88 to $187 per barrel, while petrol price was increased from $74 to $130. Prior to the conflict, crude oil was priced at $72 per barrel, but rose to $88 on the second day of the war and had now reached $115 per barrel.

He said oil shipments from Arab countries usually arrived within four to five days via the Strait of Hormuz, however, supplies routed through the Red Sea were now taking around 12 days to reach Pakistan.

Sheikh added that the government was trying to stretch the use of existing reserves and had temporarily allowed the import of oil below Euro-5 standards to manage the situation.

Read More: How many countries have pushed back on Trump’s Hormuz ship demand?

The committee members were informed that a ministerial committee formed by the prime minister was reviewing the petroleum supply situation on a daily basis. Sheikh added that despite the rise in international prices, petroleum products remained available across the country.

The petroleum secretary also said the country currently had crude oil reserves sufficient for 11 days, while two tankers carrying petrol and diesel had recently arrived. He noted that options were being explored to purchase oil from Russia, which was currently being bought by many countries worldwide.

He said Pakistan was also in talks with Iran to allow oil shipments through the Strait of Hormuz, adding that four Pakistani oil vessels waiting in the region could proceed immediately if permission was granted.

The committee members were also informed that gas supplies from Qatar were completely suspended due to the ongoing conflict. Officials added domestic gas production had been increased in response to manage demand.

They said that of eight LNG cargoes expected in March, only two arrived while six could not reach Pakistan because of the war. In April, three out of six scheduled cargoes were also expected to be delayed. They warned that the country could face a gas shortage after April 14 if supplies did not resume.

Read More: USS Abraham Lincoln moves farther from Iran after reported drone threats

An emergency gas supply plan for March was also presented to the committee. Under the proposal, system gas supply is expected to decrease from 655 to 642 million cubic feet per day (mmcfd), while RLNG supply could increase from 28 to 30 mmcfd. Overall gas supply was projected to decline from 683 to 672 mmcfd.

The plan proposed increasing gas supply for domestic consumers from 399 to 420 mmcfd, while reducing consumption in the commercial sector from 10 to 8 MMCFD and in the process industry from 140 to 120 mmcfd.

Gas supply to the power sector is expected to increase from 18 to 20 mmcfd, while fertiliser plants may receive 30 mmcfd, up from 29 mmcfd. Supply to captive power plants was proposed to be reduced from 82 to 70 mmcfd.

The officials added that Pakistan also had an agreement with a company in Azerbaijan for LNG supplies if demand rose, although it would be three times more expensive.