Pakistan Petrol Supply Secured for March & April: Finance Minister Assured

Pakistan’s finance ministry affirmed Tuesday that petrol cargoes for March and April are “largely secured,” even as the government continues to grapple with the economic fallout from escalating tensions in the Middle East and a recent spike in global fuel prices. The assurance comes after a meeting led by Finance Minister Muhammad Aurangzeb to review the nation’s energy supply outlook and assess the impact of geopolitical conditions on oil and gas markets.

Supply Chain Stability Amidst Geopolitical Risk

The Committee to Monitor Petrol Prices, convened by Prime Minister Shehbaz Sharif, was briefed on the status of import arrangements and national stock levels. According to a post on X (formerly Twitter) by the finance ministry, overall inventories of crude oil and refined petroleum products are currently at “comfortable levels.” Cargo inflows are reportedly continuing on schedule, with additional shipments planned to bolster supply buffers. This proactive approach aims to mitigate potential disruptions stemming from the ongoing military confrontation in the Gulf region, a concern that prompted daily reviews of fuel prices and availability beginning earlier this month, as reported by The Nation.

The ministry’s statement highlighted the stable operation of supply lines, extending from import terminals to refineries, storage facilities and retail outlets across the country. Refineries are maintaining regular production levels, with efforts focused on maximizing throughput and efficient processing of incoming crude oil.

Financial Strain and Targeted Relief

The government’s focus on securing fuel supplies coincides with a period of significant economic pressure. Earlier this month, Pakistan increased petrol and high-speed diesel prices by Rs55 per litre to manage the impact of the US-Israel war on Iran, which has contributed to a global oil crisis. This price hike followed the announcement of unprecedented austerity measures designed to cope with the fuel crisis, including a 50% cut in fuel allowances for official vehicles and a four-day work week for some public sector employees.

Finance Minister Aurangzeb acknowledged the financial strain on consumers and reiterated the government’s commitment to providing targeted relief to vulnerable segments of the population. Speaking to media on Sunday, he stated that all relevant ministries – including petroleum, IT, and finance – are collaborating on a joint strategy to shield the public from the impacts of the Middle East conflict, as detailed in The News International. The government absorbed a burden of Rs69 billion on petroleum products to shield consumers from price shocks.

Assessing Market Dynamics and Policy Calibration

The finance ministry emphasized that the committee is actively evaluating the divergence between international and domestic fuel prices to inform policy decisions. This assessment includes monitoring global oil market developments, such as benchmark price movements, freight and insurance costs, and shipping route dynamics, particularly in the critical Strait of Hormuz. The committee also reviewed developments in LNG and LPG markets.

The government is also considering demand management and energy conservation measures to address ongoing challenges. Prime Minister Sharif recently announced an increase in the levy on high-octane fuel, a premium product used in luxury vehicles, by Rs200 per litre, a move intended to generate revenue and potentially curb consumption of more expensive fuels.

Government-to-Government Engagements and Diversified Sourcing

To further strengthen supply resilience, the government is actively pursuing government-to-government engagements with key partner countries. These efforts focus on diversifying sourcing strategies, enhancing storage and transshipment options, and securing flexible procurement and financing mechanisms. The goal is to reinforce energy security and safeguard supply continuity under evolving market conditions.

Minister Aurangzeb underscored the importance of proactive planning, diversified procurement, and close coordination among stakeholders in maintaining a stable domestic supply position despite global volatility. He directed relevant authorities to continue vigilant monitoring of international developments, stock levels, and supply chain dynamics to ensure timely and coordinated policy responses.

Looking Ahead: Maintaining Market Stability

Ensuring the uninterrupted availability of petroleum products remains the government’s top priority, according to the finance ministry. Sustained coordination and prudent planning will continue to guide efforts to maintain market stability and safeguard national energy security. The committee will continue to meet and assess the situation, with a particular focus on operational readiness across the domestic energy chain and the need for refineries to operate at optimal throughput levels.

The finance minister reiterated that Pakistan’s resources are not unlimited and must be utilised carefully. While the energy supply situation is expected to remain stable until April, the government is prepared to implement further measures if the conflict in the Gulf prolongs, potentially including a nationwide energy conservation drive.