Pakistan Reviews Fuel Supply Plans Amid Oil Price Risks

Pakistani authorities are evaluating contingency measures to address potential fuel supply challenges as escalating geopolitical tensions in the Middle East threaten to significantly increase global crude oil prices.

A high-level meeting convened at the Chief Minister House on Sunday reviewed the current petroleum supply position and examined emergency fuel conservation strategies aimed at prolonging existing reserves in the event of supply disruptions.

The meeting was chaired by Syed Murad Ali Shah, Chief Minister of Sindh, and attended by Federal Finance Minister Muhammad Aurangzeb and Federal Petroleum Minister Ali Pervaiz Malik, along with senior officials from both federal and provincial administrations.

During the briefing, participants were informed that international crude oil prices could rise to approximately $120 per barrel if regional hostilities intensify, creating significant pressure on Pakistan’s energy import requirements.

Officials noted that such an increase could raise Pakistan’s monthly oil import bill to roughly $600 million, potentially placing additional strain on the country’s external sector and broader economic stability.

The meeting also addressed concerns regarding possible fuel hoarding by petrol pumps and emphasised the need for stronger coordination between federal and provincial authorities to prevent artificial shortages in domestic markets.

Participants were further informed that three petroleum cargo shipments are scheduled to arrive in Pakistan by Monday, which may help stabilise fuel availability in the short term.

Discussions also focused on initiatives aimed at reducing fuel consumption through responsible energy use as part of broader crisis preparedness measures.

Finance Minister Aurangzeb stated that the federal government is closely monitoring developments in international energy markets and preparing alternative strategies to mitigate the economic impact of potential oil price increases.

Petroleum Minister Malik highlighted the importance of implementing conservation measures so that existing petroleum stocks can be utilised more efficiently in the event of supply interruptions.

Officials also indicated that Pakistan is exploring alternative procurement arrangements through diplomatic engagement with Saudi Arabia, Oman and the United Arab Emirates, while simultaneously assessing supply routes that may bypass the Strait of Hormuz.

According to the petroleum minister, the government may also approach the International Monetary Fund to seek potential relief regarding petroleum levy obligations should global oil prices rise significantly.

Chief Minister Shah emphasised that sustaining economic activity while promoting prudent energy consumption remains a key government priority. He added that proposals discussed during the meeting will be presented to the provincial cabinet for further deliberation.

Officials concluded that federal and provincial authorities will maintain close coordination as the regional energy situation continues to evolve.