Pakistan Fuel Reserves Crisis: Pakistan is facing a critical shortage in its Pakistan fuel reserves, with only 27 days of petrol and 21 days of diesel stocks remaining, according to Petroleum Secretary Hamed Yaqoob Sheikh. The situation arises amid a global supply crunch exacerbated by ongoing conflicts in the Middle East.
Earlier this month, the government raised diesel and petrol prices by Rs55 per litre, a 20% increase, due to the US-Israel and Iran war affecting supply chains. This increase surpassed international market changes, as the government aimed to collect additional funds from vehicle owners to subsidize diesel for public transport and agriculture.
Despite the rising international oil prices, Prime Minister Shehbaz Sharif decided not to increase domestic petroleum prices further, honoring his commitment to the public. The government is actively monitoring the situation through a ministerial committee reviewing petroleum supplies daily.
The Senate Standing Committee on Petroleum was informed of the country’s limited reserves, including nine days of LPG and 14 days of JP-1 aviation fuel. Approximately 70% of Pakistan’s petroleum supplies originate from the Middle East, with current regional tensions disrupting shipments and extending delivery times through the Strait of Hormuz and the Red Sea.
The price of high-speed diesel has surged from $88 to $187 per barrel, while petrol has increased from $74 to $130. Crude oil prices have also risen significantly, reaching $115 per barrel since the conflict’s onset.
To manage the crisis, the government has allowed temporary imports of oil below Euro-5 standards. Talks are underway with Iran to permit oil shipments through the Strait of Hormuz, potentially allowing four Pakistani vessels to proceed.
Gas supplies from Qatar have been suspended, and domestic production has been increased to meet demand. However, the country faces potential gas shortages after April 14 if supplies do not resume. An emergency gas supply plan has been proposed, outlining adjustments in domestic and commercial consumption.
Pakistan is exploring alternative options, including purchasing oil from Russia and securing LNG supplies from Azerbaijan, although at higher costs. The government remains focused on mitigating the impact of the global crisis on its energy security.
Published in SouthAsianDesk, March 17, 2026
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