Finance Minister Assures Stable Fuel Supply Despite Key International Routes Blocked

Finance Minister Muhammad Aurangzeb on Monday assured the public that the country’s energy supplies are stable, despite ongoing tensions in critical global shipping routes.

Officials reported that national petroleum reserves are currently at comfortable levels, with no immediate risk of supply shortages. While domestic energy stocks remain sufficient, the Finance Minister noted that disruptions in the Strait of Hormuz and tensions around the Strait of Bab al-Mandeb (below Yemen) are significant global energy risks that could have implications for Pakistan if they persist.

The assurance came during a meeting of the Cabinet Committee on Petrol Prices, formed by the Prime Minister to monitor domestic fuel markets. The committee reviewed trends in forward and futures prices, examined the strength of regional and international supply chains, and evaluated potential impacts on foreign exchange due to market volatility.

Possible fiscal consequences of a prolonged regional conflict were also considered.

The Finance Minister emphasized that the committee will act as a strategic oversight body, monitoring developments daily and coordinating closely with relevant authorities. Ministries and regulatory bodies have been tasked with validating stock positions, tracking shipments, managing storage, and preparing for any potential emergency situations. Any necessary adjustments to domestic fuel prices resulting from international market changes will be implemented transparently and predictably to maintain market stability.

The meeting also included a review of LNG and LPG supplies, terminal operations, shipment schedules, and line-pack management. Officials were asked to refine scenario analyses and weigh economic and fiscal trade-offs of alternative fuel use and demand management strategies.

To ensure readiness, the committee will convene daily, consolidating data to enable real-time monitoring of global prices, domestic stock levels, foreign exchange exposure, and the overall energy supply chain.

The session was attended by Federal Minister for Petroleum Ali Pervaiz Malik, Federal Minister for Power Sardar Awais Ahmad Leghari, Minister of State for Finance Bilal Azhar Kayani, as well as senior officials from relevant ministries, divisions, and regulatory bodies.