ISLAMABAD: In the face of global market volatility, the Cabinet Committee to Monitor Petrol Prices reaffirmed that fuel supplies remain stable, while calling for immediate coordination with the State Bank of Pakistan and commercial banks. The committee also suggested temporary enhancements and consortium-based financing, where necessary, to address operational challenges caused by larger Letters of Credit (LCs) and to ensure uninterrupted fuel imports.
The committee was informed that diesel reserves currently offer about 24 days of coverage, while petrol stocks are at comfortable levels, supported by ongoing imports and refinery activity.
The meeting was chaired by Federal Minister for Finance and Revenue Muhammad Aurangzeb as part of the government’s continued daily assessment of the energy sector amid persistent regional tensions.
A comprehensive review of petroleum stock levels was conducted, with officials noting that despite increased volatility in global energy markets and shifting regional dynamics, domestic supply remains steady with sufficient availability nationwide.
The Petroleum Division briefed participants that one crude oil shipment has arrived and is being offloaded, while another is expected to dock at Karachi shortly. Additional cargoes are already in transit, and further import plans for March and April are actively being arranged to strengthen reserves. Members apprised that refinery output is expected to improve as incoming cargoes are processed, with efforts ongoing to maximise production across facilities.
The committee was also informed that global petroleum markets are currently very tight, with noticeable increases in benchmark prices and cargo premiums. Members observed that these conditions reflect supply-side uncertainties tied to regional developments, with elevated premiums likely to persist in the near term.
Rising international prices have significantly increased the cost of imports, leading to larger transaction sizes and putting strain on existing financing structures. The committee reviewed challenges linked to increased LC sizes and stressed the importance of stronger coordination between banks and importers to maintain smooth fuel imports.
The finance minister directed that the issue be taken up with the State Bank of Pakistan and the Pakistan Banks’ Association to explore facilitation measures, including temporary increases in limits and consortium financing where needed. The SBP governor assured that prudential limit concerns would be addressed promptly, while banks were encouraged to adopt flexible approaches to handle higher transaction volumes under current conditions.
The committee also examined domestic demand trends, noting signs of higher consumption in recent weeks. Members stressed the need for close monitoring to prevent speculative stockpiling and ensure consistent fuel availability. Provincial authorities and regulators have been instructed to enhance oversight through inspections and enforcement where required.
With the upcoming Eid holidays and harvesting season in view, the committee assessed supply continuity plans and was informed that Oil Marketing Companies are prepared to meet demand. It was reiterated that depots will remain operational as needed, and no disruption in fuel supply is expected.
Progress on improving monitoring systems was also reviewed, including the development of a digital dashboard to enhance real-time tracking of stock levels and supply conditions.
The finance minister highlighted the importance of timely data sharing and instructed all stakeholders to ensure prompt information exchange to support effective decision-making.
Officials also briefed the committee on ongoing efforts to diversify supply sources through engagement with international partners. Discussions with key suppliers, including government-to-government arrangements, are advancing, with additional volumes expected to strengthen supply security in the coming weeks.
Reaffirming the government’s priority, the finance minister stated that ensuring uninterrupted availability of petroleum products while minimising public burden remains the top objective. He noted that despite continued volatility and rising prices in global markets, proactive planning and coordination have helped maintain stability in domestic supply.
He further directed that the committee continue daily monitoring of global trends, domestic stock levels, and supply chain conditions to enable timely policy responses, reiterating the government’s commitment to energy security and a stable petroleum supply chain.
The meeting was attended by Federal Minister for Petroleum Ali Pervaiz Malik, Federal Minister for National Food Security and Research Rana Tanveer Hussain, the SBP governor, and senior officials from relevant ministries and regulatory bodies.
