ISLAMABAD – As escalation between Iran and Israel continue unabated, it sparked concerns about sharp increase in petroleum product prices across Pakistan, and parts of world. Shipping companies have reported surge in freight charges for oil tankers due to fears of a potential closure of Strait of Hormuz – which provides only sea passage from Persian Gulf to open ocean.
Sources familiar with development said the freight cost for oil tankers transporting crude from the Persian Gulf moved up by nearly 15 percent. Before Middle East Tensions, it cost around $900,000, the freight charges are now estimated to have climbed to between 1.1 and 1.2 million.
Insurance premiums for these shipments have also increased significantly, from $15,000 to approximately $22,000.
Officials from the Pakistan National Shipping Corporation (PNSC) revealed that GPS signals in the Strait of Hormuz have faced intermittent disruptions, causing operational challenges. One PNSC vessel was reportedly prevented from entering the Strait due to a two-hour GPS blackout.
In response to the escalating situation, the Pakistani government has ordered an immediate import of 140 million liters of petrol to safeguard domestic supply. Meanwhile, the Oil and Gas Regulatory Authority (OGRA) has instructed oil companies to maintain reserves sufficient to meet 20 days of demand.
The government and industry experts are closely monitoring the developments in the region, given the critical role of the Strait of Hormuz in global oil supply and its direct impact on Pakistan’s energy security.
Oil and Gas Regulatory Authority (OGRA) instructed all Oil Marketing Companies to maintain mandatory 20-day fuel reserves to ensure uninterrupted supply amid market uncertainties caused by the Iran-Israel conflict.
Pakistan currently hold sufficient petroleum stocks, and OGRA is actively monitoring situation to safeguard energy security. As Iran-Israel conflict intensified, with Tel Aviv launching surprise attack on June 13 targeting Iranian military and nuclear sites, resulting in many casualties including senior commanders and scientists.
