Pakistan plans oil imports via Red Sea, mulls weekly fuel price review amid Hormuz disruption

As part of contingency planning, the Pakistan government plans to import crude oil through the Red Sea from Saudi Arabia and the United Arab Emirates and is considering shifting to a weekly petroleum price review mechanism as the closure of the Strait of Hormuz disrupts shipping routes in the Gulf, The Express Tribune reported. 

Officials said that these measures are aimed at ensuring uninterrupted fuel supplies during the ongoing Iran–US–Israel tensions that have affected oil shipments through the strategic waterway. 

Pakistan imports roughly one million barrels of oil each month, with Saudi Arabia and the UAE among its main suppliers.

Tribune cited sources as saying that shipments from Abu Dhabi National Oil Company (Adnoc) and Saudi Aramco will be routed through Red Sea export terminals to bypass the Strait of Hormuz. 

One refinery has already received cargo through this route, while additional vessels carrying oil supplies are either arriving or en route to Pakistan.

The government is also considering replacing the existing fortnightly petroleum price adjustment with a weekly review. Officials said the change is intended to discourage hoarding of fuel by dealers during periods of price volatility.

Authorities have placed vessels of Pakistan National Shipping Corporation on standby to lift cargoes from Saudi Arabia and the UAE if required.

According to officials, Pakistan currently holds petrol and diesel stocks sufficient to meet about 28 days of domestic demand. The reserves were built following earlier instructions from the Petroleum Division to maintain adequate fuel inventories amid rising geopolitical risks.

The Oil and Gas Regulatory Authority had increased oil stock levels after assessing potential escalation in the Middle East. Officials said the country maintained more than 25 days of fuel cover in January and expanded it to 28 days in February through additional imports.

The disruption has already delayed shipments destined for Pakistan. Two crude oil cargoes remain stranded after the closure of the Strait of Hormuz. 

Energy experts warn that if the conflict continues, global oil supply chains could face broader disruptions. Officials said Pakistan is monitoring developments and coordinating with suppliers to ensure continued fuel availability.