ISLAMABAD: The Senate Standing Committee on Petroleum met on Thursday to assess Pakistan’s fuel stock position and address concerns regarding liquefied natural gas (LNG) supply disruptions. The meeting, chaired by Senator Manzoor Ahmed in the absence of Senator Umer Farooq, highlighted the impact of regional conflicts on petroleum imports and the potential need for policy measures to manage fuel consumption.

According to Senate of Pakistan, the Secretary of Petroleum briefed the Committee on the challenges posed by disruptions in petroleum supply from neighboring Gulf countries due to ongoing regional conflicts. The Secretary reported that the availability of oil tankers has been affected as ship owners are hesitant to operate under current conditions. Pakistan relies heavily on imports for its crude oil, diesel, and petrol, primarily sourced through the Persian Gulf via the Strait of Hormuz. Prolonged conflict may necessitate longer shipping routes to maintain supply.

The Committee was informed of alternative arrangements, including a temporary allowance for Pakistan to purchase Russian oil, although logistical issues such as banking channels and port limitations present challenges. The Secretary assured that efforts are underway to maximize existing petroleum reserves and a high-level committee, chaired by the Finance Minister, is monitoring the situation daily. The Oil and Gas Regulatory Authority (OGRA) is also tasked with daily stock and price evaluations.

Pakistan’s current petroleum reserves, as detailed in the meeting, include 392 thousand metric tons of crude oil, 404 thousand metric tons of diesel, and 564 thousand metric tons of petrol, with daily consumption rates provided for each. The ongoing threshing season has increased diesel demand, necessitating continuous supply efforts.

Senator Manzoor Ahmed raised concerns over recent price hikes in petroleum products and their impact on the public. The Secretary Petroleum clarified that price adjustments were made to prevent market disruptions and attributed the rise to increased international diesel prices.

Policy measures under consideration to manage fuel consumption include facilitating two- and three-wheelers and possibly implementing an odd-even vehicle policy. The Secretary noted the significant impact of global oil supply disruptions on India and China, affecting their oil supply routes by 60 percent and 40 percent, respectively.

Senator Saadia Abbasi voiced concerns over delays in finalizing Russian import arrangements and the associated price increase’s burden on citizens. The Committee learned of current LNG supply challenges, with force majeure notices from Qatar affecting monthly shipments and potentially leading to electricity load shedding as LNG reserves are projected to last only until mid-April.