Govt body reviews energy situation: Diesel stocks provide about 24-day cover

ISLAMABAD: Amid global market volatility, the Cabinet Committee to Monitor Petrol Prices affirmed stable fuel supplies while directing urgent coordination with the State Bank of Pakistan and other banks, including temporary enhancements and consortium-based financing where required, to ease operational challenges arising from the increased size of Letters of Credit (LCs) and safeguard uninterrupted imports.

The committee was informed that diesel stocks currently provide approximately 24 days of cover, while petrol stocks remain at comfortable levels, supported by ongoing imports and refinery operations.

Federal Minister for Finance and Revenue Muhammad Aurangzeb chaired the meeting, as part of the government’s ongoing daily review of developments in the energy sector amid continued regional tensions.

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The committee undertook a detailed review of petroleum product stock positions and was briefed that, despite heightened volatility in international energy markets and evolving regional dynamics, domestic supply remains stable with adequate stocks available across the country.

The Petroleum Division informed the Committee that one cargo of crude oil has arrived and is under discharge, while another vessel is expected to reach Karachi harbour within hours. Additional shipments remain in transit, and more import arrangements for March and April are being actively managed to reinforce national reserves. Members were apprised that refinery output is expected to improve as incoming cargoes are processed, with efforts under way to optimise production levels across facilities.

The Committee was also briefed that global petroleum markets remain exceptionally tight, with recent increases observed in both benchmark prices and cargo premiums. Members noted that the prevailing market conditions reflect supply-side uncertainties linked to regional developments, with premiums for upcoming cargoes expected to remain elevated in the near term.

It was highlighted that rising international prices have significantly increased the landed cost of imports, resulting in larger transaction sizes and placing pressure on existing financing arrangements. The Committee discussed operational challenges arising from the increased size of LCs and emphasised the need for enhanced coordination between financial institutions and importers to ensure continuity of fuel imports.

Finance Minister directed that the matter be taken up with the State Bank of Pakistan and the Pakistan Banks’ Association to explore facilitation measures, including temporary enhancements and consortium-based financing where required. The State Bank Governor assured the Committee that any issues relating to prudential limits would be reviewed on priority, while banks were encouraged to adopt flexible approaches to accommodate higher transaction volumes in view of prevailing market conditions.

The Committee also reviewed demand patterns in the domestic market and noted indications of elevated off-take in recent weeks. Members emphasised the importance of close monitoring to discourage speculative stockholding and ensure that fuel availability remains smooth across the distribution network. Provincial administrations and regulatory authorities have been directed to intensify oversight, including inspections and enforcement actions where necessary.

In view of the upcoming Eid holidays and the ongoing harvesting season, the Committee reviewed supply continuity arrangements and was informed that Oil Marketing Companies will maintain operational readiness to meet the demand. It was reiterated that depots will remain functional in line with commercial requirements, and no disruption in fuel availability is anticipated during this period.

The Committee further reviewed progress on strengthening monitoring mechanisms, including the development of a digital dashboard aimed at improving real-time visibility of stock levels and supply conditions.

The Finance Minister emphasised the need for timely data integration and directed all stakeholders to ensure prompt sharing of information to support informed decision-making.

Members were also briefed on ongoing engagements with international partners to diversify supply sources and mitigate potential disruptions. It was noted that discussions with key suppliers, including under government-to-government arrangements, are progressing, with additional volumes expected to strengthen supply security in the coming weeks.

The Finance Minister reiterated that the government’s foremost priority is to ensure the uninterrupted availability of petroleum products across the country while minimising the burden on the public. He observed that while international markets continue to exhibit volatility and upward price pressures, proactive planning and coordinated efforts have helped maintain a stable domestic supply position.

The Finance Minister further directed that the Committee continue its daily monitoring of global market developments, domestic stock levels, and supply chain dynamics to enable timely and coordinated policy responses. He reaffirmed the government’s commitment to maintaining market stability, safeguarding national energy security, and ensuring the uninterrupted functioning of the petroleum supply chain in the face of evolving external challenges.

The meeting was attended by the Federal Minister for Petroleum, Ali Pervaiz Malik, the Federal Minister for National Food Security and Research, Rana Tanveer Hussain, and the Governor of the State Bank of Pakistan, along with federal secretaries and senior officials from relevant ministries, divisions, and regulatory authorities.

Copyright Business Recorder, 2026