ISLAMAABAD – The Petroleum Secretary informed the Senate committee that Pakistan is in talks with Iran to obtain permission for oil tankers to pass through the Strait of Hormuz. He said that if permission is granted, four of Pakistan’s oil tankers that are currently waiting will be able to proceed. He also added that Pakistan is trying to purchase oil from Russia.
According to reports, a meeting of the Senate Standing Committee on Petroleum was held under the chairmanship of Senator Manzoor Ahmed, where the Petroleum Secretary briefed the participants.
The secretary said that tensions in the Middle East have disrupted the supply of petroleum products and shipping traffic is currently halted. The price of high-speed diesel has risen from $88 to $187, while petrol has increased from $74 to $130. Oil from Arab countries usually arrives within four to five days, and efforts are being made to increase the country’s current reserves.
He added that the import of oil below the Euro-5 standard has now been allowed. A ministerial committee formed by the prime minister reviews the petroleum situation daily. Although petrol prices have increased, petrol remains available across the country. Crude oil reserves are sufficient for 11 days, diesel for 21 days, and petrol for 27 days, while LPG reserves are available for nine days and Jet-P1 fuel reserves for 14 days.
Senator Manzoor Ahmed questioned why prices were increased despite the country having reserves for 28 days.
The Petroleum Secretary responded that previously oil tankers used to arrive within four days through the Strait of Hormuz, but shipments via the Red Sea now take around 12 days. He added that if oil refineries in Saudi Arabia are attacked, production could be halted. He also said that under IMF conditions Pakistan cannot provide subsidies and petroleum prices will now be determined on a weekly basis.
Senator Hidayatullah asked what oil prices and taxes were before March 7 and how much they increased afterward.
The Petroleum Secretary said that before the war crude oil was priced at $72 per barrel, which rose to $88 on the second day of the conflict and has now reached $115 per barrel. He also confirmed that two tankers carrying diesel and petrol have already arrived.
Senator Saadia Abbasi asked why Pakistan was not buying Russian oil when many countries around the world were doing so.
The Petroleum Secretary replied that Pakistan is also trying to purchase oil from Russia and is negotiating with Iran to allow its oil tankers to pass through the Strait of Hormuz. He said that four Pakistani tankers are waiting for this permission.
The Director General of Liquefied Gas informed the committee that gas supply from Qatar has been completely suspended. In the current situation, domestic gas production has been increased and gas demand has not yet exceeded power sector requirements. In March, only two of the eight scheduled gas cargoes arrived due to the war, while six could not reach Pakistan. In April, three out of six cargoes are also expected to be delayed. Officials warned that after April 14 the country may face a shortage of gas.
Gas authorities also briefed the committee on the emergency gas supply plan for March 2026. According to the plan, system gas supply will be reduced from 655 MMCFD to 642 MMCFD, while RLNG supply is proposed to increase from 28 to 30 MMCFD. Overall gas supply is expected to drop from 683 to 672 MMCFD.
Gas consumption for domestic consumers is planned to increase from 399 to 420 MMCFD. Consumption in the commercial sector is proposed to decrease from 10 to 8 MMCFD, while gas supply to the process industry will be reduced from 140 to 120 MMCFD. Gas supply to the power sector is expected to increase from 18 to 20 MMCFD, fertilizer plants from 29 to 30 MMCFD, while supply to captive power plants may be reduced from 82 to 70 MMCFD.
The briefing further stated that if LNG demand increases, Pakistan also has an agreement with a company in Azerbaijan, but LNG imported from Azerbaijan would be three times more expensive.
