Briefing the committee, the official said Pakistan was in talks with Iran to secure permission for oil shipments to pass through the Strait of Hormuz. If permission is granted, four Pakistani vessels could transport oil cargoes through the route.
He also warned that Pakistan could face a severe gas shortage after April 14 due to disrupted LNG cargo supplies. Meanwhile, the government has decided to provide a Rs23 billion subsidy for motorcycle and rickshaw owners using savings generated under its austerity policy.
The Senate Standing Committee on Petroleum met under the chairmanship of Senator Manzoor Ahmed and was briefed on the regional situation and its impact on Pakistan’s energy supplies.
The secretary petroleum said nearly 70 per cent of Pakistan’s petroleum products were imported from the Middle East. However, the ongoing conflict has affected shipping routes and supply chains.
He told the committee that the price of high-speed diesel had risen from $88 to $187, while petrol prices had increased from $74 to $130. Normally, oil shipments from Arab countries reach Pakistan within four to five days, but cargoes routed through the Red Sea are now taking about 12 days.
The official said the country currently had crude oil reserves for 11 days, diesel for 21 days, petrol for 27 days, LPG for nine days and JP-1 fuel for 14 days. The government was attempting to optimise the use of existing reserves, while temporary permission had also been granted to import oil below the Euro-5 quality standard.
According to the secretary petroleum, crude oil prices stood at $72 per barrel before the war but rose to $88 on the second day of the conflict and have now climbed to $115 per barrel. Negotiations with Iran are continuing to allow oil shipments through the Strait of Hormuz, which could enable four Pakistani vessels to transport crude cargoes.
The committee was also informed that gas supplies from Qatar had been completely suspended. Of the eight LNG cargoes expected in March, only two reached Pakistan, while six failed to arrive due to the war. Similarly, of the six cargoes expected in April, three may also fail to arrive.
Under the current circumstances, officials warned that Pakistan could face a severe gas shortage after April 14.
Gas authorities also briefed the committee on an emergency supply plan, saying overall gas supply was expected to fall from 683 mmcfd to 672 mmcfd. To manage shortages, the government is considering increasing gas supply for domestic consumers while reducing supply to the commercial sector, process industries and captive power plants.
Officials added that Pakistan had an agreement with a company in Azerbaijan to import LNG if demand rises, although LNG from that source would be nearly three times more expensive.
The secretary petroleum further told the committee that the government had decided to provide a Rs23 billion subsidy from savings generated under its austerity policy. The subsidy will be extended to around 30 million motorcycle and rickshaw owners and will be distributed to eligible beneficiaries using data from the Benazir Income Support Programme.
Officials from the Oil and Gas Regulatory Authority (Ogra) and the petroleum division have begun working on the subsidy mechanism. They said savings from austerity measures would be used to finance the subsidy, similar to relief programmes introduced during the Covid-19 pandemic.
Committee members questioned where the Rs23 billion subsidy would come from and asked what measures had generated the savings, urging that any financial benefit should go to the public rather than companies.
Officials responded that various cost-saving measures had been implemented under the prime minister’s directives.
Govt monitoring petroleum stocks
Separately, the government has decided to conduct a daily review of petroleum reserves to closely monitor the energy situation.
A committee tasked with monitoring petrol prices was informed that Pakistan remained “adequately positioned in terms of fuel availability”, with March requirements fully secured and supply coverage available up to mid-April under current cargo planning.
According to a statement issued by the Ministry of Finance, the committee reviewed the national inventory of crude oil and refined petroleum products, import arrangements and supply chain logistics.
Officials told the meeting that the country had “comfortable inventories of crude oil and key petroleum products for March, with sufficient planning in place to ensure continued availability during April”. Efforts are also under way to extend coverage towards the end of April.
The meeting, chaired by Finance Minister Muhammad Aurangzeb at the Finance Division, was part of the government’s daily review of the energy sector amid tensions in the Middle East.
During the session, procurement patterns and maritime logistics were also examined, with the committee stressing the need to diversify sources of petroleum imports to strengthen Pakistan’s energy supply chain.
Officials said procurement strategies were already shifting towards greater diversification to reduce reliance on any single supply corridor.
Finance Minister Aurangzeb assured that the government remained “fully focused on ensuring uninterrupted availability of petroleum products across the country”, adding that the “current stock position and supply outlook remain stable”.
He stressed that “there is no basis for panic buying or unnecessary stockpiling of fuel”.
Authorities, in coordination with Ogra and provincial governments, were directed to closely monitor market activity and stock levels to prevent hoarding.
“It was emphasised that any attempts to create artificial shortages or disrupt normal supply would be dealt with strictly in accordance with the law,” the statement said.
Participants in the meeting included Petroleum Minister Ali Pervaiz Malik, Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry, State Bank of Pakistan Governor Jameel Ahmad and other senior officials.