Pakistan moves to build oil stocks amid Middle East tensions

ISLAMABAD: Amid the emerging security situation in the Gulf region, the Petroleum Division has formally directed the Oil and Gas Regulatory Authority (OGRA) to ensure adequate stocks of crude oil and petroleum products across the country to prevent any supply disruption.

In a “most immediate” letter dated February 28, 2026, the Petroleum Division asked OGRA’s Member (Oil), Secretary (Oil Supply Chain), and Member (Gas) to ensure the availability of sufficient stocks of crude and key petroleum products — including Motor Spirit (MS), High-Speed Diesel (HSD), and LPG — in view of the evolving security environment. The regulator has also been asked to closely track imports of these products to ensure timely deliveries.

According to industry sources, a high-level meeting jointly chaired by Federal Minister for Petroleum Ali Pervaiz Malik and Federal Minister for Finance Muhammad Aurangzeb was held on Friday to review the country’s oil stock position in light of regional tensions. The meeting assessed potential risks to fuel supplies stemming from disruptions to shipping routes, particularly around the Strait of Hormuz.

Senior officials from the Petroleum Division, the Governor of the State Bank of Pakistan, Member (Oil) OGRA, and top executives of major refineries — including Pak-Arab Refinery Company, Cnergyico, Pakistan Refinery Limited, and National Refinery Limited — as well as Pakistan State Oil and representatives of the Oil Companies Advisory Council attended the session.

Sources said the SBP governor assured participants that there would be no delays in oil-related payments, enabling refineries and oil marketing companies to continue smooth import operations despite external uncertainties.

During the meeting, Pakistan Refinery Limited (PRL) and Pak-Arab Refinery Company (PARCO) informed participants that they are facing certain logistical challenges in crude procurement due to the evolving situation around the Strait of Hormuz. However, both refineries confirmed that they currently hold sufficient crude stocks and expect only minor delays, if any.

Cnergyico told the meeting that it has one million barrels of U.S. crude available at its port, with an additional two million barrels expected to arrive in March via routes that do not pass through the Strait of Hormuz. National Refinery Limited stated that it is sourcing crude from Fujairah and does not foresee any supply disruption.

Industry sources further revealed that finished petroleum product stocks in the country are sufficient for more than one month. Major oil marketing companies also confirmed that supply chains remain intact and there is no shortage in the market.

To ensure close monitoring, the finance minister directed the Petroleum Division to submit daily reports on national stock levels. The petroleum minister, meanwhile, instructed OGRA to maintain strict oversight of supply and market conditions.

A follow-up review meeting is expected on Monday to reassess developments in the region, sources added.

Industry leaders present at the meeting maintained that the situation remains under control, emphasized that there is no panic scenario, and assured that Pakistan’s fuel supply position will remain stable despite the emerging security challenges in the Gulf region.