Pakistan maintains ‘comfortable’ level of fuel stocks for March, committee told
2026-03-16 - 15:03
ISLAMABAD: The country maintains a “comfortable” level of fuel stocks for March, a meeting of a committee tasked with monitoring petrol prices was informed on Monday, the Finance Ministry said. The development comes as the government announced a Rs55 per litre hike in the prices of both petrol and high-speed diesel amid the ongoing Middle East conflict, which has resulted in a fuel crunch. As per a press release by the ministry, the committee met at the Finance Division in Islamabad today, under the chairmanship of the Finance Minister Muhammad Auragzeb, as part of its “daily review” of the energy sector amid tensions in the Middle East. The committee was briefed on the “national inventory of crude oil and refined petroleum products, “ongoing import arrangements, and supply chain logistics. During the meeting, the committee was informed that the country “remains adequately positioned in terms of fuel availability, with March requirements fully secured”. As per the Finance Division, “based on current cargo planning and supply arrangements, coverage is available up to mid-April”. The committee was told that efforts were being taken to “extend coverage towards the end of April”. It was said that, as per the overall stock levels and scheduled imports, the country has “comfortable inventories of crude oil and key petroleum products for March, with sufficient planning in place to ensure continued availability during April”. During the meeting, “procurement patterns and maritime logistics” were reviewed as well. As per the statement, the committee stressed the need for “further diversifying sources of supply to enhance resilience of the national energy supply chain”. The committee was further informed that “procurement strategies are already moving towards greater diversification, with efforts underway to broaden sourcing from the international market and reduce reliance on any single corridor, thereby strengthening Pakistan’s overall energy security”. The finance minister gave reassurance 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”. The committee also directed relevant authorities — in coordination with OGRA and provincial governments — to “closely monitor stock levels and market activity to check any incident of 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 read. In attendance at the meeting were: Minister for Petroleum Ali Pervaiz Malik, Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry, the Governor State Bank of Pakistan Jameel Ahmad, and other relevant officials. Earlier, a meeting of the Senate Standing Committee on Petroleum was told by Petroleum Secretary Hamed Yaqoob Sheikh that Pakistan has sufficient petrol reserves for 27 days and diesel reserves for 21 days. The standing committee was chaired by Senator Manzoor Ahmed. The secretary said that jet fuel (JP1) reserves were available for 14 days, crude oil reserves for 11 days and liquefied natural gas (LNG) reserves for nine days. Additionally, he informed the committee that the import of oil of quality below Euro 5 standard had now been allowed. Sheikh said that 70 per cent of Pakistan’s petrol comes from the Middle East, and due to the suspension of ship movements affecting supply, prices have increased. The price of high-speed diesel rose from $88 to $187, while petrol increased from $74 to $130, he added. “A ministerial committee formed by the prime minister reviews the situation of petroleum products on a daily basis,” Sheikh told the meeting, adding that the government was trying to increase the use of existing reserves. Senator Manzoor Ahmed said that the “entire benefit was passed on” to oil marketing companies. In response, the petroleum secretary said that the price hike had been adopted to stop the hoarding of petroleum, and this “did not benefit oil marketing companies”. Oil marketing companies continued to import despite the increase in prices, he added, saying that the move had “affected oil marketing companies across the country”. Asked by Senator Hidayatullah about petroleum product prices before March 7 and the extent of their increase, Ogra officials said that diesel prices had risen by 100pc, while petrol had increased by 70pc. The petroleum secretary added that “the government is working on a package to provide relief to motorcycles and rickshaws” and that they have taken measures which would “provide relief to the people”. “Sixty per cent of India’s petrol imports have been affected ... All countries are trying to ensure the safe supply of petrol,” he said, adding that two of Pakistan’s ships were also stuck in the Strait of Hormuz. Officials said that there were two agreements in place for importing LNG from Qatar. “LNG supply from Qatar has been completely stopped since March 2,” Ogra officials said. “Eight cargoes were scheduled to arrive in March, of which only two arrived, while six cargoes are expected in April.” The officials added that Sui Southern Gas Company had cut gas supply to a fertiliser plant by 50pc, and gas supply to the power sector had been reduced from 300 million cubic feet per day (MMCFD) to 130 MMCFD. Officials said LNG would not be available in the country after April 14, and the power sector’s gas requirements would not be met in April, adding that “the sector’s needs will be met from other sources”. They further said that gas would be supplied to domestic consumers, while LNG could be purchased from the State Oil Company of the Azerbaijan Republic (Socar). However, spot purchases would cost $24 per unit, while gas from Qatar is available at $9 per unit. “This will make electricity more expensive,” they added. On Sunday, the government also increased the price of kerosene oil by another Rs40 per litre and approved a Rs23 billion price differential subsidy for payments to oil marketing companies to keep the prices of petrol and high-speed diesel (HSD) unchanged for the current week. Last week, Prime Minister Shehbaz Sharif announced that petroleum prices would remain unchanged for the current review period, stressing that the decision was aimed at easing the financial burden on the public.