Global fuel prices surge as ME tensions continue; Pakistan’s oil reserves limited

Global prices of petrol and diesel have surged sharply amid escalating tensions in the Middle East, raising concerns about fuel supply stability in Pakistan.

The situation was reviewed during a meeting of the Senate Standing Committee on Petroleum, chaired by Senator Manzoor Ahmed, where officials briefed lawmakers on the country’s petroleum supply and reserves.

Secretary Petroleum informed the committee that Pakistan’s fuel supply has been affected due to instability in the Middle East, from where the country imports nearly 70 percent of its petroleum products. Ongoing tensions have also disrupted the movement of oil tankers, slowing shipments to the region.

According to the briefing, international prices of high-speed diesel have jumped from $88 to $187 per barrel, while petrol prices have risen from $74 to $130 per barrel in the global market.

Officials noted that under normal conditions, oil shipments from Arab countries reach Pakistan within four to five days. However, the current geopolitical situation has created uncertainty in supply chains.

To manage the situation, the government is attempting to maximise the use of existing reserves. The Petroleum Secretary also told the committee that Pakistan has temporarily allowed the import of petroleum products below the Euro-5 standard in order to maintain adequate supply.

The meeting was informed that a ministerial committee formed by the Prime Minister is monitoring the petroleum situation on a daily basis.

At present, Pakistan has crude oil reserves for about 11 days, diesel for 21 days, petrol for 27 days, LPG for 9 days, and JP-1 (jet fuel) for approximately 14 days, according to the briefing.

Officials said the government is closely tracking global developments and taking measures to ensure fuel availability in the country.