A meeting of the Cabinet Committee to Monitor Petrol Prices in the Wake of the Emerging Situation in the Region, constituted by the Prime Minister yesterday, was held Monday under the Chairmanship of Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, at the Finance Division.
The committee undertook a comprehensive stocktaking exercise and deliberated on all matters within its mandate. Members reviewed trends in forward and futures prices of petroleum products, assessed the resilience of regional and international supply chains amid the evolving geopolitical environment, examined potential short- and medium-term foreign exchange implications of price volatility, and evaluated measures to prevent supply disruptions while ensuring uninterrupted domestic availability of petroleum products, said a release issued here.
The possible fiscal impact of a prolonged conflict was also considered.
A detailed assessment of global oil market conditions was presented, including movements in international benchmarks, freight and insurance costs, shipping route dynamics, and alternate sourcing options. Various supply and pricing scenarios were evaluated to ensure preparedness under different contingencies.
The committee was informed that national stocks of petroleum products are presently at comfortable levels.
The Finance Minister emphasized that there is no immediate supply stress and that maintaining market confidence and orderly conditions remains essential. While acknowledging that the international environment is fluid and evolving, he noted that Pakistan’s energy supply chain remains stable and fully functional.
The committee noted that closure of strait of Hormuz and tensions around strait of Babb Al-Mandeb are major challenges for global energy security. If the situation persists then it may have implications for Pakistan’s energy supply chain.
The Finance Minister stated that the Committee will operate as a strategic governance forum to continuously monitor developments and undertake structured scenario planning.
He underscored that ensuring availability of energy supplies across the country is the Government’s primary objective and will remain the central driver of all decisions.
He directed all relevant entities to intensify coordination, validate physical stock positions, closely track shipments and storage, and remain fully prepared to respond to emerging developments.
He further emphasized that any decisions taken by the Committee will be implemented with clarity and transparency.
Pricing implications arising from international market movements, where unavoidable, will be addressed through established mechanisms in a predictable and orderly manner to avoid distortions or abrupt adjustments.
The meeting also reviewed LNG and LPG supply positions, shipment schedules, terminal operations, and line-pack considerations.
Relevant ministries were tasked with refining comparative scenario assessments, including economic and fiscal trade-offs associated with alternative fuel utilization and demand management options.
To ensure continuous oversight and institutional readiness, it was decided that the Committee will convene daily, with structured data consolidation followed by formal review.
This mechanism will enable real-time monitoring of international price movements, domestic stock levels, foreign exchange exposure, and supply chain developments.
Concluding the meeting, the Finance Minister reaffirmed that the Government is closely monitoring the situation at the highest level and that proactive measures are firmly in place.
He assured the public and market participants that there is no cause for concern. Energy supplies remain stable, governance mechanisms are fully operational, and comprehensive contingency planning is actively underway to safeguard national interests.
Earlier, Prime Minister Shehbaz Sharif has constituted an 18-member high-level committee to oversee the impact of rising international oil prices on the country’s economy in the wake of the US-Israel attack on Iran. According to a notification issued by the Prime Minister’s Office on Monday, the committee has been formed after international oil prices showed an upward trend amid the evolving regional situation.
Its members include the minister for petroleum, minister for power, minister of state for finance, the governor of the State Bank of Pakistan, secretaries of petroleum, power and finance, the chairman of the Federal Board of Revenue, the special secretary to the prime minister, the chairman of the Oil and Gas Regulatory Authority, the managing director of Pakistan Refinery Limited, the head of supply chain of Pakistan State Oil, the head of Pakistan LNG Limited, the managing directors of SNGPL and SSGC-LPG, and representatives of the Inter-Services Intelligence and the Intelligence Bureau.