Pakistan Reviews Fuel Supply Amid Rising Middle East Tensions

Federal and provincial authorities have conducted a detailed review of Pakistan’s petroleum supply position amid escalating tensions in the Middle East, with officials cautioning that an intensification of the regional conflict could drive global crude oil prices higher and place additional strain on the country’s economy.

Ali Pervaiz Malik, Federal Minister for Petroleum, stated that three petrol cargo shipments are expected to arrive in Pakistan by Monday as authorities continue monitoring developments in international energy markets following the conflict involving the United States, Israel and Iran.

The issue was examined during meetings held in Karachi and Lahore, where federal ministers and provincial leadership assessed petroleum reserves, demand trends and contingency measures aimed at ensuring uninterrupted fuel availability.

At a meeting convened at the Chief Minister House in Karachi, attended by Murad Ali Shah, Chief Minister of Sindh, along with Finance Minister Muhammad Aurangzeb, Petroleum Minister Malik and other officials, participants were briefed on developments in global oil markets and Pakistan’s current fuel reserve position.

Officials indicated that if tensions in the Middle East escalate further, international crude oil prices could reach approximately $120 per barrel, which may significantly increase economic pressures on Pakistan.

The meeting also considered possible energy conservation initiatives designed to regulate fuel consumption while maintaining economic activity.

Finance Minister Aurangzeb stated that the federal government is closely tracking international energy market developments and preparing contingency strategies to address the financial implications of higher oil prices.

He warned that a substantial rise in global crude prices could increase Pakistan’s monthly oil import bill by up to $600 million, thereby placing further pressure on the country’s external account.

Petroleum Minister Malik emphasised that fuel conservation initiatives would be essential to ensure that existing petroleum reserves remain available for priority sectors.

Officials further informed the meeting that Qatar had declared force majeure, a development that could potentially disrupt liquefied natural gas (LNG) supplies and create additional uncertainty within energy markets.

Government officials also stated that Pakistan has intensified diplomatic engagement with Saudi Arabia, Oman and the United Arab Emirates to explore alternative fuel supply arrangements, including routes that bypass the Strait of Hormuz.

Participants agreed on the need for stronger coordination between federal and provincial authorities to prevent hoarding practices and ensure smooth distribution of petroleum products nationwide.

The government is also considering seeking relief regarding petroleum levy obligations during upcoming discussions with the International Monetary Fund to reduce financial pressure on consumers in the event of a sharp rise in global oil prices.

Separately, in Lahore, Maryam Nawaz, Chief Minister of Punjab, held a meeting with Finance Minister Aurangzeb and Petroleum Minister Malik to assess the implications of the regional conflict on petroleum supply within the province.

Officials briefed the meeting on the availability of petrol, diesel, LNG and other fuels while reviewing provincial demand and supply conditions.

Participants agreed on adopting fuel conservation measures to maintain equilibrium between petroleum demand and supply.

The chief minister directed authorities to ensure uninterrupted diesel availability for agricultural activities and instructed district administrations to monitor petroleum distribution closely.

She also ordered strict enforcement action against hoarding and directed the Punjab Enforcement and Regulatory Authority and the provincial Transport Department to monitor fuel availability and ensure compliance with price regulations.

Authorities were further instructed to ensure that petroleum products are sold strictly at officially notified prices and that the public does not face prolonged queues at petrol pumps.

The meetings concluded with officials agreeing to maintain close coordination between federal and provincial institutions to manage the evolving energy situation and safeguard economic stability.