ISLAMABAD:

Saudi Arabia has assured Pakistan of oil supply security through the Port of Yanbu on the Red Sea to help meet the energy requirement. Pakistan’s government is also looking at the United Arab Emirates (UAE) for oil shipments through the Red Sea.

Amid war tensions in the Gulf, the international oil prices are going up and the local industry projects a price increase of Rs50 per litre. The government has planned to import oil through the Red Sea from Saudi Arabia and the UAE due to the closure of the Strait of Hormuz amid plans to shift from fortnightly to weekly oil price revisions.

Pakistan imports one million barrels of oil per month and Saudi Arabia is a key exporter. The UAE also supplies oil to Pakistan.

Abu Dhabi National Oil Company (Adnoc) and Saudi Aramco will provide oil to Pakistan through an alternative route to the Strait of Hormuz. One refinery has already received a few oil-carrying ships through the Red Sea. Some other vessels are on their way to Pakistan.

In another measure, the government is going to take a decision on shifting from the existing fortnightly fuel price reviews to weekly revisions. The objective is to discourage the hoarding of petroleum products by the dealers.

Meanwhile, Federal Minister for Petroleum Ali Pervaiz Malik held a meeting with Saudi Ambassador Nawaf bin Said Al-Malki, where both sides discussed matters of mutual interest and bilateral cooperation.

The federal minister, while deliberating on the implications of the closure of the Strait of Hormuz, stated that Pakistan was closely monitoring the evolving situation as most of the country’s energy supplies transit through that shipping lane.

He emphasised that the government of Pakistan was actively endeavouring to ensure continuity of energy supply for its people. He noted that the support of brotherly countries like Saudi Arabia meant a lot to Pakistan during the challenging times.

Ali Pervaiz underscored that Saudi Arabian sources had assured Pakistan of the security of oil supplies through the Port of Yanbu on the Red Sea, which could help meet energy needs.

Acknowledging that Riyadh was already assisting Pakistan, the federal minister said that one vessel would be sent from Pakistan to the Port of Yanbu to lift crude oil. He expressed hope that the provision of oil from the Port of Yanbu would be prioritised for Pakistan.

The ambassador stated that the kingdom was fully aware of the evolving situation and reaffirmed that it would stand firmly with Pakistan to meet any emergency requirements. He emphasised that Pakistan and Saudi Arabia were brotherly countries and would continue to stand together, especially in such testing times.

The government has tasked Pakistan National Shipping Corporation (PNSC) to bring oil cargoes from Saudi Arabia and the UAE. The Oil and Gas Regulatory Authority (Ogra) has already ensured high stocks of fuel to meet 28 days of requirement following pre-emptive measures to import surplus oil.

However, owing to the US-Israel and Iran war, two cargoes of crude oil have been stuck in the wake of closure of the Strait of Hormuz. This shipping lane is 21 miles (33 km) wide through which around a fifth of the world’s total oil consumption passes.

Regulated supplies

In a statement, Ogra said that to ensure the uninterrupted availability of petroleum products and discourage hoarding during periods of extreme price volatility, oil marketing companies (OMCs) may temporarily regulate supplies to retail outlets based on their historical sales pattern. “This measure is a standard supply management practice aimed at maintaining stability in the distribution system,” it said.

Ogra assured the public that the country currently holds adequate stocks of petrol and diesel, well within the required limits. “There is no shortage of petroleum products,” it said and advised citizens not to pay attention to rumours and rely on information coming through official channels.