Pakistan Plans Emergency Petroleum Measures Amid Strait of Hormuz Closure

ISLAMABAD: Pakistan is preparing to implement a set of emergency measures to address challenges in the petroleum sector following the closure of the Strait of Hormuz, familiar with the matter. The proposed steps aim to maintain market liquidity and ensure continued fuel availability as trade disruptions impact the region.

Sources indicate that a summary outlining these measures is being submitted to the federal cabinet’s Economic Coordination Committee (ECC) for prompt consideration. Among the key proposals are the introduction of weekly petroleum price revisions, compensation for oil companies facing increased insurance and import premiums, and the enforcement of fuel conservation strategies such as mandatory work-from-home policies.

These actions are being considered in response to a noticeable surge in petroleum prices and concerns about the stability of supply chains. Despite these concerns, officials noted that current stocks of petrol and diesel remain high, with both products exceeding 500,000 tonnes—sufficient for 26 days of petrol and 25 days of diesel coverage, respectively.

In anticipation of potential supply constraints, the state-run Pakistan State Oil (PSO), with government approval, has already initiated two import tenders each for petrol and diesel from sources outside the Strait of Hormuz. This move is described as a precautionary measure, given the current robust stock levels.

Additionally, sources report that Saudi Arabia has already been involved in discussions regarding petroleum supply, though further details were not provided in the available reports.

The ECC is expected to review the proposed measures without delay, as authorities seek to mitigate the impact of regional trade disruptions on Pakistan’s energy markets. Officials emphasize the importance of swift action to maintain market stability and prevent shortages.