ISLAMABAD — With the escalating Iran-Israel conflict casting fresh uncertainty over global oil supplies, Pakistan’s energy regulators and policymakers are scrambling to ensure the country isn’t caught off guard by potential disruptions.
The Oil and Gas Regulatory Authority (OGRA) has reminded all oil marketing companies (OMCs) to strictly maintain at least 20 days’ worth of fuel stocks — a key licensing condition that several firms have been lax in meeting, officials say.
“OGRA confirms that current petroleum stocks are adequate to meet immediate demand,” the regulator said in a statement on Saturday. “However, given the evolving situation, all companies must comply fully with minimum stock requirements or face fines and other penalties.”
Behind the scenes, the government has activated a high-level task force to review Pakistan’s oil security and pricing options should tensions in the Gulf region worsen. Prime Minister Shehbaz Sharif formed the committee earlier this week, appointing the finance minister as its head, along with senior officials from the petroleum division, OGRA, and energy experts.
At its first meeting, the committee assessed backup supply routes in case the strategically vital Strait of Hormuz — through which about 20% of the world’s crude oil passes — becomes a flashpoint. Officials discussed tapping into existing pipelines in Saudi Arabia and the UAE that can bypass the strait entirely.
“Saudi Arabia’s East-West Petroline and the UAE’s Adcop pipeline to Fujairah are potential alternatives if the main shipping route is blocked,” a government energy advisor said.
The Petroleum Division has warned that any closure of the Strait could push global crude oil prices sharply higher, possibly into the $100–$150 per barrel range — a scenario that would strain Pakistan’s fragile economy.
For now, no immediate shortage is expected, but the government is exploring ways to bolster strategic reserves. Experts have suggested using idle storage facilities at decommissioned power plants to stockpile furnace oil. Some officials have even floated the idea of acquiring these old storages outright to prevent them being sold off as scrap.
Talks are also under way with key suppliers in the Gulf to secure additional shipments if needed.
For households already grappling with high inflation, any global oil shock could translate to further hikes in petrol and transport costs — something officials are keen to avoid with proactive planning.
