KEY POINTS
- Cabinet committee says petrol and diesel supplies remain stable despite regional tensions
- Government orders enhanced monitoring of stocks, imports and market behaviour
- State Bank and banks asked to facilitate larger fuel import financing needs
ISLAMABAD: The government said on Wednesday that Pakistan’s fuel supply remained stable despite heightened volatility in global oil markets and continued regional tensions, as a cabinet-level monitoring body ordered tighter oversight of stocks, imports and financing.
The assurance came at a meeting of the Cabinet Committee to Monitor Petrol Prices, chaired by Finance Minister Senator Muhammad Aurangzeb, with Petroleum Minister Ali Pervaiz Malik, National Food Security Minister Rana Tanveer Hussain, the State Bank governor and senior officials from relevant ministries, divisions and regulators in attendance.
According to an official account of the meeting, the committee reviewed petroleum stock positions and was told that adequate supplies were available.
Diesel inventories were said to provide around 24 days of cover, and petrol stocks were described as comfortable, supported by continuing imports and refinery operations.
Officials informed the meeting that one crude oil cargo had already arrived and was being discharged, while another vessel was expected to reach Karachi within hours.
Additional shipments are in transit, and import arrangements for March and April are being managed to reinforce reserves.
The committee was also told refinery throughput should improve as incoming cargoes are processed and production levels are optimised.
The review took place against a backdrop of tightening international petroleum markets, where both benchmark prices and cargo premiums have risen amid supply uncertainty linked to regional developments.
The committee noted that elevated premiums on upcoming cargoes were likely to persist in the near term, increasing the landed cost of imports and putting pressure on existing financing lines.
A major focus of the meeting was the strain on fuel import financing caused by larger transaction sizes and higher letters of credit.
The finance minister directed officials to take up the matter with the State Bank of Pakistan and the Pakistan Banks’ Association to explore facilitation measures, including temporary limit enhancements and consortium-based financing where needed.
The State Bank governor assured the committee that any issues related to prudential limits would be reviewed on priority.
Banks were also urged to adopt more flexible approaches so importers can handle larger transactions under prevailing market conditions.
The committee also examined domestic demand trends and noted signs of elevated offtake in recent weeks.
Members stressed the need for close monitoring to deter speculative stockholding and to ensure smooth fuel movement across the distribution network.
Provincial administrations and regulatory agencies were directed to intensify inspections and take enforcement action where necessary.
With Eid holidays approaching and the harvesting season underway, the meeting reviewed continuity plans and was told that oil marketing companies would maintain operational preparedness to meet demand.
Depots will remain functional in line with commercial requirements, and no interruption in fuel availability is expected during the period, officials said.
Officials also briefed the meeting on efforts to diversify supply sources through talks with international partners, including under government-to-government arrangements, with extra volumes expected in the coming weeks.
