Pakistan Plans Strategic Petroleum Reserves to Ensure 90-Day Fuel Supply

Islamabad: Pakistan has initiated progress on a plan to establish strategic petroleum reserves aimed at maintaining up to 90 days of fuel stock in the country.

The initiative comes amid concerns over potential disruptions in global oil supply routes, particularly the Strait of Hormuz, which is a key transit point for international oil shipments. The move is also linked to rising geopolitical tensions in the region, including recent military escalations involving United States and Israel against Iran, which have added uncertainty to global energy markets.

Officials view the development as a reminder of Pakistan’s heavy reliance on imported fuel and its vulnerability to external supply shocks.

Under the proposed framework, the government is also considering imposing a petroleum levy on petrol and diesel. A levy of Rs10 per litre could generate approximately Rs200 billion annually, based on an estimated annual consumption of 20 billion litres.

Over three years, this could accumulate to around Rs600 billion (over $2 billion), which authorities say may be directed toward building and maintaining strategic storage infrastructure for petroleum reserves.

Experts believe the plan, if implemented effectively, could improve energy security and help cushion the economy against global oil price volatility and supply disruptions.