Orders the establishment of a dashboard to monitor the movements of petroleum products in real time
Prime Minister Shehbaz Sharif. Photo: File
The government has ordered provincial authorities to launch strict measures against petroleum product hoarders and ensure uninterrupted fuel supplies, while confirming that sufficient reserves are available to meet the country’s needs, according to the Prime Minister’s Office.
According to the Prime Minister’s Office, officials informed at a high-level meeting that Pakistan currently has sufficient stocks of petroleum products to meet its national needs, despite the changing regional situation.
The statement said that authorities have been instructed to take strict legal action against individuals and companies involved in hoarding of petroleum products. “Any fuel pump involved in creating artificial shortages must be immediately closed, their license revoked and legal action taken,” it adds.
The Oil and Gas Regulatory Authority (Ogra) previously said it had high oil stocks to meet the country’s consumption needs for 28 days, following preventive measures to import surplus fuel. However, oil pump owners have raised the alarm, alleging that oil companies have reduced supplies and some private companies have started hoarding petroleum products.
“Either they are not supplying the product, or they have limited it to such an extent that we no longer meet the needs of the public, or the fuel stations are drying up,” the Petrol Pump Owners Association of Pakistan said in a letter on Wednesday. They urged the government to immediately intervene and ensure that oil companies consult stakeholders before imposing restrictions.
The statement further said that the Prime Minister directed Petroleum Minister Ali Pervaiz Malik to visit the provinces and, in collaboration with the provincial authorities, develop strategies to ensure efficient utilization and uninterrupted supply of petroleum products to the public.
Read: Government considers 4-day work week over fuel fears
The Prime Minister also ordered the creation of a dashboard to monitor the movement of petroleum products in real time. “This will allow data to be shared with the provinces and ensure effective monitoring of fuel transportation,” the press release said.
A day earlier, Ogra had directed managing directors of oil marketing companies (OMCs) to ensure uninterrupted supply of petroleum products to retail outlets. The regulator has warned of strict action against those involved in oil hoarding to pocket consumers’ money by creating an artificial shortage of fuel.
“Considering the current geopolitical situation and potential market sensitivities, all oil marketing companies are directed to ensure uninterrupted supply and smooth distribution of motor spirit (petrol) and fast diesel through their nationwide retail networks,” Ogra said in a letter sent to OMC CEOs.
Oil for 28 days
Ogra said it had high oil stocks to meet the country’s consumption needs for 28 days, following preventive measures to import surplus fuel.
However, due to the US-Israeli attack on Iran, two crude oil shipments remained stranded after the Strait of Hormuz was closed. This canal is 33 km wide and passes through a fifth of the world’s oil.
Last year, the Strait of Hormuz was used to ship an average of 20 million barrels of crude, condensate and fuel per day. OPEC members like Saudi Arabia, Iran, the United Arab Emirates, Kuwait and Iraq rely on this sea route to export most of their crude, mainly to Asia.
“We have sufficient stocks of gasoline and diesel to meet the country’s needs,” officials said, adding that the country could meet consumers’ fuel needs for 28 days.
However, reports have emerged that the government is considering importing oil via the Red Sea from Saudi Arabia and the United Arab Emirates (UAE) due to the closure of the Strait of Hormuz, while also moving to a weekly oil price review mechanism.
Sources said The Express PK Press Club that the government is currently working on various measures to ensure uninterrupted oil supplies in the context of the US-Israel war against Iran.
Pakistan imports around one million barrels of oil every month, with Saudi Arabia being one of the country’s largest oil exporters. The UAE also exports oil to Pakistan.
Sources said UAE-based ADNOC and Saudi Aramco would supply oil to Pakistan bypassing the Strait of Hormuz. A refinery has already imported some cargoes via the Red Sea. A few oil tankers have reached Pakistan, while others are on their way.
Finance Minister Unveils Fuel Savings Plan
A special government committee monitoring oil supplies on Thursday discussed introducing a four-day work week with reduced working hours and switching educational institutions to virtual learning as part of possible energy-saving measures.
Despite differences over the pace of action, committee members largely agreed that the government would not be able to cushion the impact of rising global energy prices and would have to shift the entire burden onto domestic consumers.
The minister further added that Pakistan has around 28 days of equal stocks of petrol and diesel and 10 days of crude oil. There are also LPG stocks equivalent to 15 days of the country’s requirement and we are closely monitoring the situation, said Aurangzeb, who is also the chairman of the Prime Minister’s Committee to Monitor Petrol Prices in the Face of the Emerging Situation in the Region, which was constituted by the Prime Minister and met for the third time on Wednesday.
He, however, said LNG shipments were stuck in Qatar and the government was closely monitoring the situation.
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According to a document released by the Finance Ministry, members of the petroleum committee reviewed energy-saving measures as part of a broader contingency plan to effectively manage demand while maintaining orderly market conditions.
The committee stressed that while supply conditions remain stable, prudent use and conservation of energy at all levels would help strengthen national preparedness if international uncertainties persist, the Finance Ministry said.
Strait of Hormuz
The ships received VHF transmissions from Iran’s Revolutionary Guards stating that “no ships are allowed to pass the Strait of Hormuz.” The Revolutionary Guards said Iranian forces had “full control” of the Strait of Hormuz, a vital route for global oil and gas supplies, and that any ships seeking to pass through it risked damage from stray missiles or drones.
The Strait of Hormuz is also nicknamed an energy corridor, as millions of barrels of oil move from one part to another from here. PHOTO: REUTERS
The strait is the world’s most vital oil export route, connecting the Gulf’s largest oil producers, such as Saudi Arabia, Iran, Iraq and the United Arab Emirates, to the Gulf of Oman and the Arabian Sea.
Around 20% of the world’s oil, including from producers in Saudi Arabia, the United Arab Emirates, Iraq, Kuwait and Iran, passes through Hormuz, as do large volumes of liquefied natural gas from Qatar.
Tehran has threatened for years to block the narrow waterway in retaliation for any attack on the Islamic Republic.
Fourteen LNG tankers showed signs of slowing down, turning around or stopping in or around the strait, said Laura Page of consultancy Kpler, who added that the number was likely to rise, posing risks for Qatari LNG exports.
