Ship-tracking data shows a Pakistan-bound oil tanker passing through the Strait of Hormuz over the weekend, indicating that some countries are able to negotiate safe passage for their vessels despite the US-Israeli war on Iran.
The Kpler data provider MarineTraffic said the Karachi was “the first non-Iranian cargo to transit the chokepoint while broadcasting its AIS signal, suggesting that select shipments may be receiving negotiated safe passage” in a post on X.
Pakistan has sufficient petrol reserves for 27 days and diesel reserves for 21 days, Petroleum Secretary Hamed Yaqoob Sheikh said on Monday while addressing a meeting of the Senate Standing Committee on Petroleum.
The standing committee, chaired by Senator Manzoor Ahmed, was meeting after the government announced a Rs55 per litre hike in the prices of both petrol and high-speed diesel amid the ongoing Middle East conflict, which has resulted in a fuel crunch.
The secretary added that jet fuel (JP1) reserves were available for 14 days, crude oil reserves for 11 days and liquefied natural gas (LNG) reserves for nine days.
Additionally, he informed the committee that the import of oil of quality below Euro 5 standard had now been allowed.
Sheikh said that 70 per cent of Pakistan’s petrol comes from the Middle East, and due to the suspension of ship movements affecting supply, prices have increased.
The price of high-speed diesel rose from $88 to $187, while petrol increased from $74 to $130, he added.
“A ministerial committee formed by the prime minister reviews the situation of petroleum products on a daily basis,” Sheikh told the meeting, adding that the government was trying to increase the use of existing reserves.
Senator Manzoor Ahmed said that the “entire benefit was passed on” to oil marketing companies. In response, the petroleum secretary said that the price hike had been adopted to stop the hoarding of petroleum, and this “did not benefit oil marketing companies”.
Oil marketing companies continued to import despite the increase in prices, he added, saying that the move had “affected oil marketing companies across the country”.
Officials said that there were two agreements in place for importing LNG from Qatar.
“LNG supply from Qatar has been completely stopped since March 2,” Ogra officials said. “Eight cargoes were scheduled to arrive in March, of which only two arrived, while six cargoes are expected in April.”
The officials added that Sui Southern Gas Company had cut gas supply to a fertiliser plant by 50pc, and gas supply to the power sector had been reduced from 300 million cubic feet per day (MMCFD) to 130 MMCFD.
Officials said LNG would not be available in the country after April 14, and the power sector’s gas requirements would not be met in April, adding that “the sector’s needs will be met from other sources”.
They further said that gas would be supplied to domestic consumers, while LNG could be purchased from the State Oil Company of the Azerbaijan Republic (Socar). However, spot purchases would cost $24 per unit, while gas from Qatar is available at $9 per unit. “This will make electricity more expensive,” they added.
Separately, the Cabinet Committee to Monitor Petrol Prices was informed that the country currently had comfortable stocks of crude oil and key petroleum products for March, with supply arrangements secured until mid-April and efforts underway to further extend coverage while diversifying imports.