ISLAMABAD: Pakistan on Wednesday formally requested that Saudi Arabia provide an alternative oil supply route through Yanbu to maintain its fuel supply chain in the wake of the closure of the Strait of Hormuz following the United States-Israel attack on Iran.
The request was made by Federal Minister for Petroleum Ali Pervaiz Malik to the Saudi ambassador to Pakistan, Nawaf bin Said Al-Malki during a meeting. The Saudi ambassador assured full support in this regard, according to a statement by the petroleum division.
During the meeting, both sides discussed matters of mutual interest and bilateral cooperation. The minister apprised the ambassador about the current situation and the implications of the closure of the Strait of Hormuz on global energy markets.
He stated that Pakistan is closely monitoring the evolving situation on a daily basis, as the majority of Pakistan’s energy supplies transit through the strait.
The minister emphasised that Pakistan’s government was actively endeavouring to ensure continuity of the energy supply chain for its people. He noted that the support of brotherly countries like Saudi Arabia meant a lot to Pakistan during challenging times.
Malik further highlighted that Saudi Arabian sources had assured security of supplies through the port of Yanbu on the Red Sea, which could help meet energy requirements.
He also expressed gratitude for the continued support of Saudi Arabia and stated that the kingdom was already assisting Pakistan. He added that one vessel had been assured dispatch from Pakistan to the port of Yanbu to lift crude oil for Pakistan.
The minister further expressed hope that supplies of oil from Yanbu would be prioritised for Pakistan.
The ambassador stated that the kingdom was fully aware of the evolving situation and reaffirmed that Saudi Arabia will stand firmly with Pakistan to meet any emergency requirements.
He emphasised that Pakistan and the Kingdom of Saudi Arabia are brotherly countries and will continue to stand together, especially in these testing times.
While monitoring supplies and exploring alternative import routes, 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.
At a meeting of a newly created 18-member cabinet committee reviewing the impact of the closure of the Strait of Hormuz, 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.
However, the committee also observed that if the situation persisted, it could have implications for Pakistan’s energy supply chain.
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.
