Pakistan Lacks Strategic Oil Reserves Amid $126/Barrel Spike

Pakistan's Petroleum Minister Ali Pervaiz Malik acknowledged on Thursday that the country lacks strategic petroleum reserves, leaving it exposed to a surge in global crude oil prices that reached nearly $126 per barrel, the highest since 2022. The price spike stems from disruptions in the Strait of Hormuz amid escalating tensions in the Middle East, including the ongoing Iran conflict and restrictions on shipping routes.

Malik, speaking to local television, stated that Pakistan holds only five to seven days of crude oil in commercial reserves and 20 to 21 days of refined petroleum products with oil marketing companies. "We are not like India, which has 60-70 days of reserves and can release it with just a single signature," he said. In contrast, India maintains substantial strategic stockpiles alongside commercial reserves, enabling it to manage supply shocks more effectively through releases and diversified imports from sources including Russia and Venezuela.

The crisis has intensified pressure on Pakistan, which imports nearly 90 percent of its oil from Gulf nations. Prime Minister Shehbaz Sharif reported that the weekly oil import bill has tripled to $800 million from $300...