The government is weighing measures to ease financing constraints for fuel imports after a surge in global oil prices increased the cost and size of cargo purchases, putting pressure on existing banking arrangements.
The cabinet committee monitoring petroleum prices was told that higher international prices have raised the landed cost of imports, resulting in larger transaction sizes and complicating the opening of letters of credit (LCs).
Finance Minister Muhammad Aurangzeb directed authorities to engage with the State Bank of Pakistan and the Pakistan Banks’ Association to explore support measures, including temporary increases in financing limits and consortium-based lending structures.
The central bank governor said prudential limits would be reviewed on a priority basis, while commercial banks were urged to adopt flexible approaches to facilitate higher transaction volumes.
Despite the cost pressures, officials said domestic fuel supplies remain stable. Pakistan currently holds about 24 days of diesel stocks, while petrol inventories are at comfortable levels, supported by steady imports and refinery output.
The Petroleum Division informed the committee that a crude oil cargo is currently being discharged, with another vessel expected to arrive in Karachi shortly. Additional shipments are in transit, and import plans for March and April are being actively managed to maintain supply levels.
Global oil markets remain tight, with elevated benchmark prices and higher cargo premiums reflecting supply uncertainties linked to regional tensions. Officials expect these pressures to persist in the near term.
The committee also reviewed domestic demand trends, noting higher fuel consumption in recent weeks, and called for stricter monitoring to prevent hoarding and ensure smooth distribution. Provincial authorities have been directed to step up inspections and enforcement measures.
Ahead of the Eid holidays and the harvesting season, the government said oil marketing companies would maintain operational readiness, with no disruption in fuel availability expected.
Pakistan is also working to diversify supply sources through engagements with international partners, including government-to-government arrangements, to strengthen energy security.
Aurangzeb said the government’s priority remains ensuring uninterrupted fuel supplies while limiting the impact of rising global prices on consumers, adding that authorities will continue daily monitoring of market conditions and supply chain dynamics.