Country has 28 days of fuel
The Oil and Gas Regulatory Authority (Ogra) has high stocks of oil to meet 28 days of consumption requirement of the country following pre-emptive measures to import surplus fuel.
Owing to the US-Israel and Iran war, however, two cargoes of crude oil have been stuck after the closure of the Strait of Hormuz. This channel is 21 miles (33 km) wide and a fifth of the world's oil passes through it.
The Strait of Hormuz was used to ship an average of 20 million barrels of crude, condensate and fuel per day last year. OPEC members like Saudi Arabia, Iran, the United Arab Emirates, Kuwait and Iraq depend on this shipping lane to export most of their crude, mainly to Asia.
"We have ample stocks of petrol and diesel to meet the country's requirement," officials said, adding that the country could meet fuel needs of consumers for 28 days.
They said the regulator had feared an escalation in Middle East tensions, "therefore we maintained oil stocks for over 25 days in January and 28 days in February following surplus fuel imports". However, experts say the entire world could encounter an oil crisis if the war continued for a week. "Our two crude oil cargoes have been stuck due to the closure of the Strait of Hormuz," sources said, adding that remaining imports were scheduled to arrive later.
The Petroleum Division had earlier directed Ogra to ensure the availability of adequate stocks of crude and petroleum products to avoid any supply disruption. Imports of petrol, diesel and LPG may also be tracked for timely deliveries given the emerging security situation in the Gulf, it said.
The government on Friday assured the nation that Pakistan had ample crude and petroleum product stocks and there was no cause for panic. The assurance came during a high-level meeting jointly chaired by Federal Minister for Petroleum Ali Pervaiz Malik and Federal Minister for Finance Muhammad Aurangzeb.
The State Bank governor emphasised that there would be no delay in oil-related payments, enabling refineries and oil marketing companies to continue smooth import operations.
Meanwhile, international oil markets have shifted focus to supply risks. OPEC+ is considering a significantly larger output increase in the wake of supply threats. Crude producers could raise production by 411,000 barrels per day in April – triple the previously expected increase of 137,000 bpd.
Saudi Arabia and the UAE have already ramped up exports in anticipation of the disruption. Saudi crude shipments reached near three-year highs in February, while UAE Murban exports are set to rise in April. Combined exports from Iraq, Kuwait and the UAE are going up.
Global oil prices jumped on Monday, hitting their highest level in months. During the day, Brent crude briefly topped $82 per barrel.