• Decision taken to avoid fiscal burden following closure of the Strait of Hormuz
• Cabinet panel told petrol, diesel stocks sufficient for almost 30 days

ISLAMABAD: Amid disruption to LNG imports from Qatar, the government on Mon­day decided to continue passing on the impact of rising global oil prices to consumers under the existing fortnightly adjustment mechanism to avoid a fiscal burden, while closely monitoring supplies and exploring alternative import routes following the closure of the Strait of Hormuz.

A meeting of the newly created 18-member cabinet committee, constituted by the prime minister to monitor petroleum prices in view of the emerging regional situation, was informed that petrol and diesel stocks in the country were sufficient for almost 30 days. However, Qatar Gas had shut its LNG facility after it came under attack.

An official communication from Doha on the latest situation was still awaited. LNG supplies would nevertheless not be available beyond a few cargoes that had already crossed the Strait of Hormuz towards Karachi.

The cabinet body — formed to monitor price volatility and devise a mitigation strategy for Pakistan’s economy — is headed by Finance Minister Muhammad Aura­ngzeb and comprises the ministers for petroleum and power, minister of state for finance, State Bank governor, secretaries of petroleum, power and finance, Federal Board of Revenue chairman, special secretary to the prime minister, Oil and Gas Regu­latory Authority chairman, Pakistan Ref­i­nery Limited managing director, head of supply chain of Pakistan State Oil, head of Pakistan LNG Limited, managing directors of SNGPL and SSGC-LPG, and representatives of the Inter-Services Intelligence and Intelligence Bureau.

The meeting reviewed the impact of the closure of the Strait of Hormuz and directed the relevant authorities to expl­ore alternate supply routes. It was repor­ted that there was no immediate emergency, and that Saudi supplies of finished products could be routed through the Red Sea, while imports from the UAE via Fujairah were outside the troubled route.

The committee undertook a comprehensive stocktaking exercise and deliberated on all matters within its mandate, an official statement said. 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.

A detailed assessment of global oil market conditions was presented, including movements in international benchmarks, freight and insurance costs, shipping route dynamics and alternative sourcing options. Various supply and pricing scenarios were evaluated to ensure preparedness under different contingencies. It was noted that clearer cost trends would eme­rge once the London market resumed tra­d­ing and could be reviewed later this week, as the committee would meet regularly.

Mr Aura­ngzeb told the meeting that there was no immediate supply stress and that maintaining market confidence and orderly conditions remained essential. He noted that Pakistan’s energy supply chain remained stable and fully functional.

It observed that the closure of the Strait of Hormuz and tensions around the Bab el-Mandeb Strait posed major challenges for global energy security. If the situation persisted, it could have implications for Pakistan’s energy supply chain.

The finance minister underscored that ensuring the availability of energy supplies across the country was the government’s primary objective and would 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 emphasised that any decisions taken by the committee would be implemented with clarity and transparency. Pricing implications arising from international market movements, where unavoidable, would 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 utilisation and demand management options.

It was decided that the committee would meet daily, with structured data consolidation followed by formal review.

Published in Dawn, March 3rd, 2026