Despite increasing volatility in global oil markets due to tensions in the Middle East, Pakistan’s fuel supply chains remain stable, according to Mosharraf Zaidi, spokesperson for foreign media to Prime Minister Shehbaz Sharif.
“The situation in terms of supply chains and stocks and active contracts where we know shipments are on the way… things are stable to good,” Zaidi said while speaking to Bloomberg on Wednesday.
He acknowledged that the recent surge in petroleum and diesel prices has placed significant pressure on consumers in Pakistan. “There’s a lot of concern,” he said.
Last week, the government announced an increase of Rs55 per litre in the prices of petrol and high-speed diesel. As a result, the ex-depot price of high-speed diesel has been set at Rs335.86 per litre, while petrol prices have risen to Rs321.17 per litre from Rs266.17 per litre — an increase of about 17%.
Mosharraf said the government’s main priority is to prevent shortages of fuel across the country.
“The real task for us in Pakistan is to make sure no matter what the price is, at the gas station, on the street… the Pakistani consumer doesn’t have to face any kind of cataclysmic or dangerous shortage of fuel or supplies.”
He added that the government’s early decision to raise fuel prices helped stabilise supply chains.
“What we’ve done is that we have mitigated against the risk of prolonged crisis by taking difficult decisions right at the top. Pakistan might have been one of the first countries in the world to increase fuel prices in anticipation of what was about to happen.
“That’s cushioned Pakistan in terms of our supply chain certainty because our OMCs and the people responsible for maintaining stocks have the cushion they need to make sure the different supply chains they have to pursue.”
Explaining shipment timelines, Mosharraf said fuel shipments normally take about five to six days to reach Pakistan due to its proximity to the region, but disruptions around the Strait of Hormuz have closed those supply routes.
He added that alternative routes could take between 18 and 20 days, creating potential supply gaps.
Earlier this week, Pakistan introduced a nationwide austerity policy aimed at reducing government spending and conserving fuel amid the global energy crisis triggered by the conflict in the Middle East following the US–Israel strike on Iran.
