Govt finalizes energy contingency plan amid regional tensions

March 04, 2026 (MLN): The federal government is finalizing a national contingency plan to safeguard Pakistan’s energy supplies amid rising regional tensions and uncertainty around key global shipping routes, as petroleum stocks remain within comfortable levels for now.

The decision emerged from a meeting of the Committee to Monitor Petrol Prices in the Wake of the Emerging Situation in the Region, chaired by Finance Minister Muhammad Aurangzeb at the Finance Division, according to the press release.

Chief Secretaries of all provinces have been called to join the next session to deliberate on the final summary and proposed national action plan.

The committee reviewed countrywide stock levels of crude oil and refined petroleum products including petrol, high-speed diesel, aviation fuels and LPG along with days of cover and daily consumption trends.

Participants that current petroleum inventories are adequate to meet domestic demand, even as global energy markets remain volatile.

A key area of concern discussed during the meeting was uncertainty surrounding the Strait of Hormuz, a critical maritime corridor for global oil shipments.

Any disruption in this route could significantly affect crude oil flows, freight rates and insurance premiums, with potential spillover effects on domestic fuel prices in Pakistan.

The committee also assessed movements in international benchmark oil prices, shipping route dynamics and developments in LNG and LPG markets.

LNG imports under long-term contracts continue to form a major component of Pakistan’s energy mix, though shipping disruptions in the region could impact global LNG logistics.

Cross border LPG inflows are also being monitored to ensure uninterrupted availability in local markets.

To mitigate risks, the government is exploring alternative sourcing routes and diversification through regional energy hubs, including potential supply arrangements via Red Sea and Gulf ports.

Diplomatic and commercial engagements with friendly countries are underway to secure additional crude and petroleum supplies if required, ensuring refinery operations remain uninterrupted.

Energy conservation measures were also reviewed as part of demand management planning. The committee emphasized that prudent consumption could help maintain supply stability if international uncertainty persists.

In addition, authorities were directed to strengthen vigilance against hoarding, diversion and smuggling of petroleum products during the period of heightened volatility.

Coordination with provincial governments is being enhanced to maintain orderly market conditions.

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

Pakistan imports a significant portion of its crude oil and petroleum products, making global oil market developments, freight costs and exchange rate movements critical determinants of domestic fuel prices.

With Brent crude and regional shipping routes under pressure in recent weeks, market participants are closely tracking policy steps to maintain energy security and price stability.

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