Islamabad (Commerce Desk): Due to rising tensions in the Middle East, Pakistan is likely to face increasing difficulties regarding oil supplies and prices in the coming days. Pakistan imports a major portion of its oil requirements from Saudi Arabia, while alternative supply routes have also been affected by the closure of the Strait of Hormuz and Houthi attacks in the Red Sea.
According to officials, the government is exploring the possibility of obtaining crude oil from Oman, Fujairah, Libya, the United States, West Africa and Kazakhstan, in addition to Gulf countries. As Pakistani ports lack the required depth for large crude oil tankers, a proposal to transfer oil from ship to ship near Oman or Hub is also under consideration.
According to the Petroleum Division, Pakistan has more than 20 days of oil stocks available, while planning is underway to meet the requirements for November. Petroleum Minister Ali Pervaiz Malik said that oil supplies from Saudi Arabia are currently suspended, while a Pakistani vessel has been kept ready on an emergency basis.
According to industry sources, war risks and freight insurance costs have increased three to four times, while oil tankers for November are also reportedly available at higher rates. In Pakistan, petrol prices have increased by approximately Rs68 per litre and diesel prices by Rs57 per litre over the past two months.