ISLAMABAD: Lawmakers on Monday questioned the government over sharp fuel price increases, despite Pakistan holding nearly a month of petroleum reserves, as officials warned that Middle East conflicts are disrupting oil shipments and could force the country to adopt longer, costlier shipping routes.
During a Senate Standing Committee on Petroleum meeting chaired by Senator Manzoor Ahmad, the petroleum secretary said Pakistan imports 25pc of its crude oil, 30pc of diesel, and nearly 70pc of petrol, primarily via the Persian Gulf through the Strait of Hormuz. He warned that the ongoing war in neighboring Gulf countries has limited tanker availability, with two Pakistani tankers currently stranded in the strait, further delaying deliveries. The government defended the recent price hikes as a measure to prevent hoarding and ensure continuous imports by oil marketing companies, but lawmakers criticized the increases. Sen. Saadia Abbasi accused the government of profiting from existing stock, while Sen. Ahmad said the policy mainly benefited fuel firms. Global disruptions have pushed high-speed diesel prices from $88 to $187 per barrel and petrol from $74 to $130 per barrel.
Despite rising costs, officials assured lawmakers that fuel remains available nationwide. Pakistan’s current stockpiles include 392,000 tons of crude oil (enough for 11 days at 36,000 tons/day), 404,000 tons of diesel (21 days at 19,000 tons/day), and 564,000 tons of petrol (27 days at 20,600 tons/day). LPG supplies cover nine days, and aviation fuel (JP-1) 14 days. To maintain availability, imports of petroleum products below Euro-5 standards are temporarily allowed, while a ministerial committee monitors the situation daily.
To mitigate shortages, Pakistan has been temporarily allowed to purchase Russian oil after sanctions were eased for one month from March 11. Officials noted that banking channels are not yet fully set up, and delivery takes 35–40 days, as large tankers must offload in Oman before reaching Pakistan.
The panel also warned of LNG shortages, with reserves sufficient only until mid-April. Gas supply to the power sector has fallen from 300 million cubic feet per day to 130 million, and one fertilizer plant has faced a 50pc cut. Authorities said domestic users will be prioritized, though electricity costs could rise if Pakistan buys spot LNG from SOCAR, Azerbaijan at around $24 per unit, compared to $9 under existing Qatar contracts.
