Pakistan Monitors Fuel Supply Amid Middle East Tensions, Orders Hoarding Inspections

Islamabad has ordered provincial authorities to inspect for illegal hoarding of petroleum products as concerns rise over potential supply disruptions due to escalating tensions in the Middle East. The move comes after reports of reduced fuel supplies to petrol pumps and warnings from industry representatives about potential closures.

Government Action and Monitoring

On Thursday, the federal government directed all provinces to instruct Deputy Commissioners (DCs) to conduct inspections within their jurisdictions to prevent the illegal hoarding of petroleum products for profiteering . The Oil and Gas Regulatory Authority (OGRA) issued a statement emphasizing concerns over potential hoarding attempts and the exploitation of the current situation for profit .

OGRA teams are actively monitoring the situation at oil depots and retail outlets to ensure a smooth supply and prevent malpractice. The public is advised not to heed rumors and to maintain normal consumption patterns, as the overall petroleum supply situation remains stable .

Industry Concerns and Supply Quotas

Leaders of the Pakistan Petroleum Dealers Association (PPDA) have raised concerns about reduced supply, with Central Punjab President Nauman Majeed reporting a 50% reduction in petrol supply . Some private companies are alleged to be hoarding products. Oil marketing companies (OMCs) have reportedly begun implementing supply quotas for petrol pumps across the country , limiting deliveries and causing some stations to run dry.

Alternative Import Routes and Price Adjustments

Amid the closure of the Strait of Hormuz – a critical shipping lane for global oil supplies – Pakistan is taking steps to secure alternative import routes. The government has requested oil supplies from Saudi Arabia through the Red Sea and is utilizing this route with shipments already en route. The government plans to shift to a weekly oil price review mechanism, from the current fortnightly system, to discourage hoarding by dealers .

Stock Levels and Emergency Measures

Despite the disruptions, Pakistan currently holds sufficient petroleum stocks to meet national demand. Stocks include over 500,000 tonnes of petrol and diesel, enough for 26 and 25 days’ cover, respectively . The government is similarly considering fuel conservation measures, such as mandatory work from home policies, to mitigate potential shortages . Pakistan State Oil (PSO) has launched import tenders for petrol and diesel outside the Strait of Hormuz as a precautionary measure .

Geopolitical Context

The situation is being closely monitored due to the ongoing conflict in the Middle East and the disruption of RLNG supplies. The closure of the Strait of Hormuz, through which approximately 20 million barrels of crude oil pass daily, is a major concern .