Finance Minister Muhammad Aurangzeb on Wednesday ruled out the possibility of any rationing of petroleum products, as he announced an intent to enact energy conservation measures amidst a disruption in the import of fuel due to the ongoing Middle East conflict.
Prices of petroleum products have spiked in the global market following the commencement of joint U.S.-Israeli airstrikes on Iran on Feb. 28. In retaliation, Tehran has targeted U.S. military assets in Gulf states and has effectively closed the Strait of Hormuz through which roughly 25% of global oil shipments are transported. Analysts have voiced concerns of looming fuel shortages in case of a prolonged conflict, with Petroleum Minister Ali Pervaiz Malik seeking Saudi support to mitigate any adverse impacts on Pakistan. Prime Minister Shehbaz Sharif, meanwhile, has constituted a committee led by the finance minister to devise a means to manage market requirements with minimal disruptions.
“We are introducing energy conservation measures to curtail demand but there would not be any rationing of these products,” the finance minister told a meeting of the Senate Standing Committee on Finance in a policy statement. He clarified that the country currently has 28 days of petroleum product cover; 10 days’ worth of crude oil reserves; and sufficient LPG supplies for 15 days, adding there is no cause for immediate concern.
While Aurangzeb did not outline any specific conservation measures, local media has reported authorities are considering shifting higher education institutions to remote learning to reduce consumption, as well as setting petrol and diesel prices on a weekly basis rather than the prevailing fortnightly price determination. Prime Minister Shehbaz Sharif is expected to review the proposals on Friday and take a final decision.
During the Senate briefing, the finance minister—who is serving as the chairman of the committee formed to monitor fuel prices—said the prime minister had empowered the fuel committee to take decisions as and when required.
Committee meeting
In a statement, the Finance Ministry said the committee’s Wednesday meeting had reviewed energy conservation measures as part of broader contingency planning aimed at managing demand efficiently while maintaining orderly market conditions.
It emphasized that while supply conditions remain stable, prudent energy use and conservation from all stakeholders would help strengthen national preparedness in case of prolonged uncertainty.
During the meeting, the committee members were informed about ongoing diplomatic and commercial engagement with friendly countries and suppliers to secure additional crude and petroleum supplies as required. The meeting also noted ongoing efforts to diversify procurement options through regional energy hubs, including potential arrangements through ports in the Red Sea and the Gulf region, to keep refineries operational and ensure supply resilience.
“The committee noted that the international energy environment remains fluid, particularly given the uncertainty surrounding the Strait of Hormuz and its implications for global energy trade,” read the statement, adding that disruptions in regional shipping routes could affect global LNG logistics.
LPG inflows through cross-border channels are also being closely monitored to ensure uninterrupted domestic availability, with the committee emphasizing the need to discourage hoarding, diversion, or smuggling of petroleum products to tackle the situation effectively.
No shortage
Separately, the Oil and Gas Regulatory Authority (OGRA) has assured the public that the country holds adequate stocks of petrol and diesel, adding there is no shortage of petroleum products.
The clarification followed the publication of an open letter to Prime Minister Shehbaz Sharif by the All Pakistan Petrol Pump Owners Association (APPPOA), seeking his intervention to avert an artificial fuel shortage in the country.
The APPPOA letter accuses oil marketing companies (OMCs) of imposing a quota on petroleum products amid the ongoing Gulf crisis. “They [OMCs] are either not providing the product or have limited to such an extent that we hardly fulfil the need of the public or fuel stations get dry,” they alleged.
“The public is reassured that the country currently holds adequate stocks of petrol and diesel, well within the required limits,” read the OGRA statement, advising citizens to ignore rumors and rely on information issued through official channels. “To ensure the uninterrupted availability of petroleum products and to discourage hoarding during periods of extreme price volatility, OMCs may temporarily regulate supplies to retail outlets based on their historical sales patterns,” it said, maintaining this was a standard supply management practice aimed at maintaining stability in the distribution system.