PM forms committee to monitor oil prices amid Middle East tensions

June 16, 2025 (MLN): To monitor petroleum product pricing and supply dynamics, Prime Minister Shehbaz Sharif has constituted a high-level committee in response to the evolving geopolitical situation following Israel’s recent attack on Iran and the resulting volatility in international oil markets.

The committee is chaired by the Federal Minister for Finance, Muhammad Aurangzeb, and includes senior representatives from key federal ministries, regulatory authorities, and energy sector experts.

The formation of this committee reflects the government’s proactive approach to safeguarding national energy interests and ensuring market stability during a time of heightened international uncertainty, as per the press release issued today.

The committee has been tasked with monitoring forward and futures prices of petroleum products and assessing the predictability of supply chains under current geopolitical uncertainties.

Additionally, the committee will determine the foreign exchange implications of petroleum price volatility in both the short and medium term.

It is also responsible for suggesting contingency plans to ensure there are no supply disruptions and that the domestic market remains adequately stocked.

Furthermore, the committee will conduct a detailed analysis of the fiscal impact should the conflict persist over an extended period.

The committee held its inaugural meeting today under the chairmanship of the Minister for Finance.

During the meeting, the members conducted a detailed assessment of the global and domestic petroleum market situation.

The committee expressed satisfaction that Pakistan currently holds adequate stocks of petroleum products and there is no immediate risk of supply disruption.

Nonetheless, members emphasized the need for continued vigilance given the rapidly changing regional context.

To ensure timely response and effective coordination, a working group will monitor developments on a daily basis, and the full committee will meet weekly to review the situation and submit recommendations to the Prime Minister.

The Petroleum Division has been designated to provide secretarial support and ensure effective implementation of the committee’s mandate.

The Government of Pakistan remains fully committed to maintaining energy security, stabilizing markets, and protecting the national interest during this critical time.