Pakistan’s Oil and Gas Regulatory Authority (Ogra) mandated a 20-day fuel reserve for oil companies due to the Iran-Israel conflict.
Ogra has instructed all oil marketing companies (OMCs) to maintain a mandatory 20-day fuel reserve to ensure an uninterrupted supply amid regional tensions. A spokesperson confirmed sufficient petroleum stocks to meet current demand, and Ogra is closely monitoring compliance. Additionally, the government has ordered the immediate import of 140 million litres of petrol. Pakistan State Oil (PSO) has secured 70 million litres through an emergency tender, which is expected to arrive by June 26.
The ongoing Iran-Israel conflict, which has been escalating since June 13, raises concerns about potential disruptions in the Strait of Hormuz, a vital route for 20% of the world’s oil supply. The Pakistan National Shipping Corporation (PNSC) has reported a 15% increase in tanker freight costs, ranging from $1.1 to $1.2 million per trip, and rising insurance premiums of $15,000 to $22,000. Additionally, there have been temporary GPS outages affecting navigation. One PNSC vessel experienced a two-hour delay due to a GPS blackout.
Read: Oil Prices Rally in 2025 as Iran-Israel Conflict Fuels Market Tensions
During a National Assembly Finance Committee meeting, Finance Secretary Imdadullah Bosal announced that reducing the Petroleum Development Levy (PDL) is not an option, especially in light of a 16% increase in global oil prices, which could lead to domestic price increases. Opposition Leader Omar Ayub expressed concerns about the implications for Pakistan’s debt and trade deficits.
Pakistan, which imports over 80% of its oil, faces inflation risks if oil prices reach $120 per barrel. The government’s proactive approach to imports and reserve management aims to stabilise supply; however, ongoing conflict could strain the economy.
