The federal government has directed oil marketing companies to urgently bolster fuel reserves and accelerate imports in response to rising geopolitical tensions in the Middle East, which have triggered a spike in global oil prices and threatened supply routes.
According to officials, Oil and Gas Regulatory Authority (OGRA) has issued a directive instructing oil firms to maintain at least 20 days’ worth of fuel reserves. As part of emergency measures, a vessel carrying 70 million litres of petrol — previously scheduled to dock on July 6 — has been rescheduled to arrive by June 26.
Meanwhile, Pakistan State Oil (PSO) confirmed that an additional 140 million litres of petrol will be made available in the country by July 1. Officials added that emergency tenders for further imports remain a possibility, depending on how the regional conflict between Iran and Israel unfolds.
The directive comes amid an acute spike in oil freight rates and insurance costs due to heightened risks in the Gulf region, particularly around the Strait of Hormuz — a strategic chokepoint through which one-fifth of global oil flows.
Industry sources report that freight rates for oil tankers have surged by 15%, with vessel charter costs rising from an average of $900,000 to between $1.1 and $1.2 million per trip. Insurance premiums have similarly escalated from $15,000 to $22,000 per voyage. Pakistan National Shipping Corporation (PNSC) officials said operational challenges — including temporary GPS signal disruptions — have delayed navigation. One PNSC vessel was held back for two hours due to such a GPS outage.
Despite these risks, the government has ruled out any relief on the Petroleum Development Levy (PDL), which is expected to remain intact even if global prices surge further.
During a session of the National Assembly’s Standing Committee on Finance earlier this week, Finance Secretary Imdadullah Bosal warned that domestic fuel prices may have to be adjusted upward, mirroring a 16% hike in global oil benchmarks. “We’re keeping a close watch,” he said. “If rates go up internationally, we’ll have to increase ours too — and the levy is staying in place.”
