Prime Minister cracks whip on fuel hoarders amid Gulf conflict fallout

Prime Minister Shehbaz Sharif has directed federal and provincial authorities to take immediate, strict action against elements creating artificial shortages of petroleum products. Chairing a high-level meeting to assess the economic impact of escalating regional tensions, the Prime Minister emphasised that whilst Pakistan’s economy remains stable, a comprehensive, preemptive strategy must be established to address emerging supply-side challenges.

The policy directive comes amid growing concerns over oil supply security triggered by recent US military strikes on Iran. In the wake of these geopolitical shocks, international fuel prices have risen, with free-on-board (FOB) diesel climbing to $138 per barrel and gasoline trading near $100 per barrel. This global rally is expected to exert severe upward pressure on the domestic market, with local consumers potentially facing retail price hikes of up to Rs40 per litre for high-speed diesel (HSD) and Rs10 per litre for petrol by next week.

The National Coordination and Management Council (NCMC), attended by Minister for Petroleum Ali Pervaiz Malik and representatives from the Oil Companies Advisory Council (OCAC), the Federal Board of Revenue (FBR), and the Oil and Gas Regulatory Authority (OGRA), met to review national fuel reserves. Although the forum confirmed that current stocks are sufficient to satisfy domestic demand, data presented by OGRA indicated localised hoarding by market actors anticipating the upcoming price revisions. Consequently, the NCMC directed OGRA and provincial administrations to step up enforcement to ensure uninterrupted fuel availability.

The administrative crackdown also coincides with deep friction within the domestic oil sector. The OCAC recently warned of a “looming petrol crisis” , citing that immediately saleable fuel inventories have dropped to roughly 15 days of stock (370,000 metric tonnes). The industry body highlighted that critical incoming shipments are facing severe customs clearance delays within the Weboc digital system, exacerbated by the rejection of an import cargo in June. Furthermore, Oil Marketing Companies (OMCs) are experiencing acute liquidity constraints due to the federal government’s failure to release Rs66.7 billion in outstanding Price Differential Claims (PDC). The industry has urged immediate state intervention to resolve these payment backlogs and streamline customs clearances to prevent widespread fuel stations closures.