ISLAMABAD: Pakistan's government and industry officials on Sunday said the country has enough fuel stockpiles to last at least a month, amid regional tensions in the Middle East that have disrupted oil supply through the Strait of Hormuz.
Pakistan relies heavily on energy imports, with majority of its crude oil and petroleum imports from the Middle East passing through the Strait of Hormuz. On Saturday, Tehran closed the shipping lane, warning that it was dangerous due to US and Israeli attacks on Iran.
The Strait of Hormuz is a narrow waterway between Iran and Oman, connecting the Gulf to the Arabian Sea. On a typical day, tankers carrying around 20 percent of global oil consumption pass through it with cargoes from Saudi Arabia, Iraq, Iran, UAE, Kuwait and Qatar.
Pakistan's Petroleum Division has been directed to submit daily stock reports, while the country's Oil and Gas Regulatory Authority (OGRA) has been tasked with maintaining strict market oversight, according to officials.
“Fuel inventories remain robust, with 28 days’ supply of both petrol and diesel currently available in stock,” OGRA spokesman Imran Ghaznavi told Arab News. "This level is comfortably above the mandatory reserve requirement, indicating a stable and well-managed supply position."
The statement came after three ships were attacked in the Strait of Hormuz, maritime security agencies said on Sunday, as Iran pressed a second day of strikes in response to ongoing US-Israeli air raids.
An official at the Pakistani energy ministry, who spoke on condition of anonymity, said finished petroleum stocks were sufficient to last for “over one month.”
The state-owned Pakistan State Oil (PSO) company said it held “healthy stock of all petroleum products.”
"However, the situation is being monitored and we will act accordingly in line with Ministry of Energy’s directives," it said in a statement.
While energy companies and regulators have taken steps to ensure fuel availability in the event of further regional disruptions, analysts warn that the country’s heavy reliance on imported crude could leave it vulnerable if the instability persisted.
“If the Strait of Hormuz is impacted [for long], this may create a shortage of oil supply in region and world as material amount of oil passes through this track,” said Shankar Terleja, head of research at Topline Securities Ltd.
“This may cause spike in petroleum prices globally.”
Ahsan Mehanti, chief executive officer of Arif Habib Commodities, said the Strait of Hormuz is "highly critical" to Pakistan for its petroleum supplies and its prolonged closure could impact "security and industrial activity."
The alternatives could include Russian and Venezuelan oil, according to Mehanti.
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has voiced concern over the potential impact of the Middle East conflict on Pakistan's economy. “The instability in the region will disrupt trade routes and lead to a massive increase in shipping costs,” FPCCI President Atif Ikram Sheikh said, urging the government to “make full efforts to achieve a ceasefire through mediation and negotiations between the United States and Iran.”
He also requested the government to “immediately formulate a policy to ensure supply chain continuity, particularly for petroleum products.”
