A committee tasked with monitoring petrol prices on Monday learnt Pakistan has stable stocks of petroleum products, with sufficient supplies for 23-24 days of diesel cover and “comfortable” stock of petrol.
Joint U.S.-Israel strikes hit Iran on Feb. 28, inciting a war that has roiled fuel supply globally, raising prices of petroleum products to a two-year high. After initially raising the ex-depot rates of both petrol and high-speed diesel by Rs. 55/liter, Pakistan has avoided further increases, offsetting the additional costs through a subsidy.
In its Monday meeting, chaired by Finance Minister Muhammad Aurangzeb, the committee constituted by Prime Minister Shehbaz Sharif reviewed the status of petroleum stocks and developments in the energy sector amid evolving geopolitical conditions. A statement issued by the Ministry of Finance said the committee had noted the existing supply position is “stable.”
It further said the committee was informed crude oil stocks currently provide around 11 days of cover, with additional cargoes in transit and committed volumes expected to sustain refinery operations and product availability through April.
The meeting, read the statement, was briefed by the Petroleum Division on active management of import plans for April, with substantial volumes already secured through both commercial and government-to-government engagements. It was also assured that refinery operations were being maintained at optimal levels, with efforts underway to maximize throughput and convert crude into refined products to support domestic demand.
Despite the assurances, the committee noted international oil markets remained highly volatile, with significant increases in benchmark prices and cargo premiums over the past week. Members noted prevailing market conditions reflected supply-side uncertainties linked to regional developments, leading to elevated premiums for both diesel and petrol cargoes.
The committee also reviewed procurement strategies and acknowledged ongoing efforts to secure favorable supply arrangements under existing contracts, including government-backed engagements, which offer comparatively lower costs than current spot market rates.
Operational aspects of fuel imports, including shipping arrangements, insurance considerations, and logistical coordination, were also discussed. The committee agreed that all such arrangements should be guided by commercial prudence, transparency, and the imperative of ensuring uninterrupted supply.
Additionally, the committee reviewed demand patterns in the domestic market and noted an increase in offtake in recent weeks. Members stressed the need to closely monitor the situation to discourage speculative stockholding and ensure smooth distribution across the country. Provincial administrations and regulatory authorities have been directed to intensify oversight and enforcement measures to maintain market discipline.
In terms of strengthening monitoring mechanisms across the petroleum supply chain, the committee focused on improving real-time data visibility, particularly at the retail level, through the development of a digital dashboard. Relevant authorities have been tasked with ensuring timely data sharing and integration to support informed decision-making.
The committee also took note of a proposal regarding fuel specification and pricing optimization, aimed at enhancing efficiency in domestic consumption patterns and supporting local refining capacity. The proposal will be examined further in consultation with stakeholders, including refineries and oil marketing companies, before being revisited for further consideration.
Further, the committee discussed the need to initiate work on a strategic petroleum reserves framework, in line with instructions from the prime minister. The Petroleum Division has been tasked with developing a structured framework for future consideration.
Chairing the meeting, Aurangzeb reiterated the government’s top priority remains ensuring the uninterrupted availability of petroleum products across the country while minimizing the impact of global price volatility on the public. He emphasized that, despite challenging international market conditions, proactive planning and coordinated efforts had helped maintain a stable domestic supply position.