ISLAMABAD:

The Committee to Monitor Petrol Prices was informed on Monday that the country currently had stable stocks of petroleum products with diesel stocks providing around 23–24 days of cover, while petrol availability remained comfortable.

Earlier this month, the government sharply increased petrol and diesel prices by Rs55 per litre, or 20 per cent, citing disruptions in global supply chains caused by the ongoing US-Israel and Iran war, which pushed crude oil prices to a two-year high.

In response, Prime Minister Shehbaz Sharif constituted a monitoring committee to oversee petroleum prices and supply after global oil routes were affected by the closure of the Strait of Hormuz during the Middle East conflict.

A meeting of the committee, chaired by Finance Minister Muhammad Aurangzeb, was held today to review the status of petroleum stocks and developments in the energy sector amid evolving geopolitical conditions.

According to a statement by the Ministry of Finance, the committee conducted a comprehensive review of petroleum product stocks, supply arrangements and import plans. 

“It was noted that the current supply position remains stable, with diesel stocks providing approximately 23–24 days of cover, while petrol availability continues to remain comfortable.

“The committee was informed that crude oil stocks currently provide around 11 days of cover, with additional cargoes in transit and committed volumes expected to sustain refinery operations and product availability through April.”

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The Petroleum Division briefed the committee on active management of import plans for April, with substantial volumes already secured through both commercial and government-to-government engagements.

The committee was assured that refinery operations were being maintained at optimal levels, with efforts underway to maximise throughput and convert crude into refined products to support domestic demand.

Despite these assurances, the committee noted that international oil markets remained highly volatile, with significant increases in benchmark prices and cargo premiums in recent days. Members noted that the prevailing market conditions reflected supply-side uncertainties linked to regional developments, leading to elevated premiums for both diesel and petrol cargoes.

The committee also reviewed procurement strategies and acknowledged ongoing efforts to secure favourable supply arrangements under existing contracts, including government-backed engagements, which offer comparatively lower costs than current spot market rates.

Operational aspects of fuel imports, including shipping arrangements, insurance considerations, and logistical coordination, were also discussed. The committee agreed that all such arrangements should be guided by commercial prudence, transparency, and the imperative of ensuring uninterrupted supply.

Additionally, the committee reviewed demand patterns in the domestic market and noted an increase in offtake in recent weeks. Members stressed the need for close monitoring to discourage speculative stockholding and ensure smooth distribution across the country. Provincial administrations and regulatory authorities have been directed to intensify oversight and enforcement measures to maintain market discipline.

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In terms of strengthening monitoring mechanisms across the petroleum supply chain, the committee focused on improving real-time data visibility, particularly at the retail level, through the development of a digital dashboard. Relevant authorities have been tasked with ensuring timely data sharing and integration to support informed decision-making.

The committee also took note of a proposal regarding fuel specification and pricing optimisation, aimed at enhancing efficiency in domestic consumption patterns and supporting local refining capacity. The proposal will be examined further in consultation with stakeholders, including refineries and oil marketing companies, before being revisited for further consideration.

Furthermore, the committee discussed the need to initiate work on a strategic petroleum reserves framework, in line with instructions from the prime minister. The Petroleum Division has been tasked with developing a structured framework for future consideration.

Chairing the meeting, Aurangzeb reiterated that the government’s top priority remained ensuring the uninterrupted availability of petroleum products across the country while minimising the impact of global price volatility on the public.

He emphasised that, despite challenging international market conditions, proactive planning and coordinated efforts had helped maintain a stable domestic supply position.