Amid escalating tensions in the Middle East, Pakistan has ordered oil marketing companies to maintain a minimum 20-day fuel reserve and expedite imports of 140 million litres of petrol. The Oil and Gas Regulatory Authority (Ogra) has issued directives to ensure compliance, while a vessel originally scheduled for July 6 will now arrive by June 26, carrying 70 million litres. Pakistan State Oil (PSO) expects an additional 140 million litres by July 1, with emergency tenders likely if the crisis worsens.
The conflict has severely impacted global oil logistics, with freight rates jumping 15%—from $900,000 to $1.2 million per trip—and insurance premiums rising sharply from $15,000 to $22,000. The Pakistan National Shipping Corporation (PNSC) reported operational hurdles, including GPS disruptions in the Strait of Hormuz, forcing one vessel to delay entry by two hours. Pakistan, which relies heavily on Gulf oil imports, remains vulnerable to further supply chain shocks.
The government has ruled out reducing the Petroleum Development Levy (PDL), warning that domestic fuel prices may rise in line with the 16% surge in global oil rates. Finance Secretary Imdadullah Bosal told the National Assembly’s Standing Committee that while reserves are stable for now, prices will be adjusted if international markets climb further. Opposition Leader Omar Ayub echoed concerns, warning of a widening trade deficit and budget shortfalls due to the crisis.
In a rare bipartisan agreement, Finance Minister Muhammad Aurangzeb acknowledged the economic threats, confirming that PM Shehbaz Sharif has formed a high-level committee to oversee fuel stocks and pricing. The move comes as the Iran-Israel conflict enters a dangerous new phase, with Iranian state media reporting 430 killed and 3,500 injured in Israeli strikes. With the Strait of Hormuz—a critical oil transit route—facing disruptions, Pakistan’s energy security hangs in the balance.