Federal govt working on relief package for motorcycles, rickshaws, Senate panel told.
ISLAMABAD – The federal government is working on relief package for motorcycles and rickshaws. A parliamentary panel was informed on Monday that LNG supply to the power sector may be curtailed from March 30, which could potentially result in worsening electricity loadshedding in the country.
The Senate Standing Committee on Petroleum, which met with Senator Manzoor Ahmad in chair, was informed by the official of the Petroleum Division that Pakistan has LNG reserves sufficient only until mid-April while petrol and HSD reserves are sufficient for 27 days and 21 days, respectively.
The committee was briefed by the secretary Petroleum on the current situation regarding the supply and availability of petroleum products. The secretary informed the committee that several neighboring Gulf countries are currently facing disruptions in petroleum supply due to the ongoing war in the region. He further stated that the availability of oil tankers has also become a major challenge, as ship owners are reluctant to offer their services under the prevailing circumstances.
The committee was informed that Pakistan imports around 25 percent of its crude oil, 30 percent of diesel and nearly 70 percent of petrol, primarily through the Persian Gulf via the Strait of Hormuz. The secretary cautioned that if the war prolongs, Pakistan may have to adopt longer shipping routes to ensure the supply of petroleum products. While briefing the committee about alternative arrangements, the secretary informed that Pakistan has recently been allowed to purchase Russian oil after sanctions were temporarily eased for one month from March 11 due to the emerging global situation. However, he noted that Pakistan currently lacks established banking channels for such transactions and the procurement process takes around 35 to 40 days. He further explained that large Russian oil tankers cannot directly berth at Pakistani ports due to size limitations; therefore, the oil is first transported to Oman and then shipped onward to Pakistan.
The secretary assured the committee that the government is making all possible efforts to stretch the existing petroleum stocks in order to avoid any potential crisis. The committee was informed that Pakistan currently has approximately 392000 metric tons of crude oil in stock, with a daily consumption of around 36000 metric tons. Diesel reserves stand at about 404000 metric tons, with a daily consumption of 19000 metric tons, while petrol reserves are around 564000 metric tons, with a daily consumption of around 20600 metric tons. He said fuel remains available across Pakistan. Current stockpiles include crude oil for 11 days, diesel for 21 days, petrol for 27 days, LPG for 9 days, and aviation fuel (JP-1) for 14 days.
According to officials, the price of high-speed diesel has surged from $88 to $187 per barrel, while petrol has climbed from $74 to $130, reflecting the impact of supply disruptions in the region. The committee was told that two Pakistani oil tankers are currently stranded in the Strait of Hormuz, further complicating logistics. To maintain supply, Pakistan has temporarily allowed the import of petroleum products below Euro-5 quality standards, while a ministerial committee formed by the PM is reviewing the fuel situation on a daily basis.
The committee also heard warnings about LNG supply constraints. Officials said LNG shipments from Qatar have been suspended since March 2, with only two of the eight cargoes scheduled for March arriving in Pakistan. If new shipments are not secured, officials warned that the country could run out of LNG after April 14, the official said. Gas supplies to the power sector have already been reduced from 300 million cubic feet per day to 130 million, while one fertilizer plant has had its gas supply cut by 50%, officials said. The government plans to prioritize domestic consumers if shortages deepen.
The official said that the government is exploring spot LNG purchases from SOCAR, Azerbaijan’s state energy company, but warned that spot prices could reach $24 per unit, far higher than the roughly $9 price under Qatar’s long-term contracts, potentially leading to more expensive electricity generation. Senator Saadia Abbasi expressed concern over the delay in finalizing arrangements for the import of petroleum products from Russia and highlighted that the recent increase of Rs55 per liter in petroleum prices has severely affected the lives of ordinary citizens.”Raising prices on existing stocks allowed the government to reap financial gains,” she said. Senator Manzoor Ahmed raised concerns regarding the recent increase in petroleum prices on the existing available stocks. Manzoor Ahmad alleged that the policy ultimately benefited OMCs. He questioned whether the government could avoid placing an additional financial burden on the people of Pakistan and sought clarification regarding the stock position and prices prior to March 7, the extent of the price increase, the taxes imposed, and the beneficiaries of the increase.
Responding to the concerns, the secretary Petroleum rejected the notion that OMCs were benefiting from the price hike. He stated that the price adjustment was made partly to prevent panic buying and hoarding in the domestic market. The committee was also informed that the government is considering several policy measures to manage fuel consumption. These include proposals to facilitate two-wheelers and three-wheelers and the possible implementation of an odd-even vehicle policy on roads if the situation deteriorates further.
The committee was further informed that Pakistan currently has two LNG supply arrangements with Qatar, known as Qatar-I and Qatar-II, under which nine LNG cargoes are normally received each month. However, the secretary informed that Qatar has issued a force majeure notice to Pakistan due to the ongoing conflict, resulting in a reduction in LNG shipments. The committee was informed that while two LNG cargoes arrived at the beginning of March, six additional cargoes could not reach Pakistan due to the prevailing war conditions. At present, Pakistan has LNG reserves sufficient only until mid-April.
