Cabinet committee to meet daily as govt tightens oversight of energy markets

The federal government on Monday decided to convene daily meetings of a high-level cabinet committee to monitor petroleum prices and energy supplies amid rising regional tensions, as it sought to ensure uninterrupted domestic availability and maintain market confidence.

The decision was taken at a meeting of the committee to monitor petrol prices in the wake of the emerging Situation in the Region, chaired by Finance Minister Senator Muhammad Aurangzeb at the Finance Division.

According to an official statement, the committee carried out a comprehensive stocktaking exercise, reviewing forward and futures prices of petroleum products, resilience of regional and international supply chains, and potential foreign exchange implications stemming from price volatility.

The forum also examined short- and medium-term fiscal risks in case of a prolonged conflict and evaluated measures to prevent supply disruptions.

Officials informed the meeting that national stocks of petroleum products were at “comfortable levels,” with no immediate supply stress.

The finance minister said Pakistan’s energy supply chain remained stable and fully functional, despite a fluid international environment. However, the committee noted that any closure of the Strait of Hormuz or heightened tensions around the Bab al-Mandeb Strait could pose challenges to global energy security and may have implications for Pakistan’s supply chain if the situation persists.

A detailed assessment of global oil market conditions was presented, including international benchmark movements, freight and insurance costs, shipping routes and alternate sourcing options. Various supply and pricing scenarios were evaluated to ensure preparedness under different contingencies.

The meeting also reviewed LNG and LPG supply positions, shipment schedules, terminal operations and line-pack considerations.

Aurangzeb directed relevant entities to intensify coordination, validate physical stock positions, closely track shipments and storage, and remain prepared to respond swiftly to emerging developments.

He said any pricing implications arising from international market movements, where unavoidable, would be addressed through established mechanisms in a predictable and orderly manner to avoid abrupt adjustments.

The committee will now meet daily, with structured data consolidation and formal review, to enable real-time monitoring of international prices, domestic stock levels, foreign exchange exposure and supply chain developments.

The meeting was attended by Petroleum Minister Ali Pervaiz Malik, Power Minister Sardar Awais Ahmad Leghari, Minister of State for Finance Bilal Azhar Kayani, along with senior officials from relevant ministries and regulatory bodies.