KARACHI: Pakistan has “comfortable levels” of petroleum stocks and the supply chains are functioning smoothly, the finance ministry said on Monday, amid an ongoing Middle East conflict that has disrupted global fuel supplies.

Global fuel supply chains have been affected by disruptions in the Strait of Hormuz, a strategic waterway between Iran and Oman and a key transit route, that has been blocked by Tehran amid ongoing United States-Israeli strikes on Iran and its counter attacks against several Gulf states.

Oil prices surged more than 25 percent past globally on Monday to $119.50 a barrel, the highest levels since mid-2022, as some major producers cut supplies and fears of prolonged shipping disruptions gripped the market due to the expanding US-Israeli war with Iran.

Finance Minister Muhammad Aurangzeb on Tuesday presided a meeting of the Cabinet Committee to Monitor Petrol Prices to review developments in the energy sector and assess national preparedness measures in light of the evolving regional situation.

“The Committee deliberated on the evolving regional and global energy situation and undertook a detailed review of petroleum product stock positions across the country,” the finance ministry said.

“The Committee noted with satisfaction that petroleum product stocks remain at comfortable levels and supply chains are functioning smoothly, with multiple cargoes and import arrangements in place to ensure continuity of supply in the coming weeks.”

The statement came days after the intensifying conflict in Middle East and subsequent disruptions last week forced Pakistan to increase petrol and diesel prices by Rs55 ($0.20) per liter.

Separately, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the government to declare an “energy emergency” and implement reliable contingency measures to insulate Pakistan’s fragile economic recovery and its exports from the severe fallout of the ongoing conflict in the Middle East.

Officials also briefed participants of Monday’s meeting on recent trends in global crude and refined petroleum product prices, which have witnessed significant volatility due to geopolitical developments in the region.

“The Committee reviewed international market indicators, including benchmark crude movements and refined product price trends, and assessed possible scenarios for global energy markets,” the finance ministry said.

“It was noted that the Government is closely monitoring international price developments and undertaking continuous scenario planning to safeguard domestic energy security and economic stability.”