Pakistan has initiated progress on a plan to establish strategic petroleum reserves aimed at ensuring fuel availability for up to 90 days, a move driven by concerns over potential disruptions in global oil supply.
According to officials, the initiative comes in response to rising geopolitical tensions, particularly around the Strait of Hormuz—a critical global oil transit route. Recent escalations involving Iran, the United States, and Israel have heightened fears of instability, prompting Pakistan to reassess its heavy reliance on imported oil.
Authorities view the development as a necessary step to safeguard the country’s energy security against external shocks. The proposed reserves would act as a buffer in case of supply interruptions, helping maintain economic stability and continuity in essential services.
As part of the emerging plan, the government is considering imposing a petroleum levy on petrol and diesel. Officials estimate that a levy of Rs 10 per liter could generate approximately Rs 200 billion annually, based on an estimated consumption of 20 billion liters per year.
Over a period of three years, this could raise around Rs 600 billion (over $2 billion), which would be allocated toward building infrastructure for strategic fuel storage facilities.
The move aligns Pakistan with international practices, as many countries maintain strategic reserves to manage supply risks and price volatility in global energy markets.
Experts believe that establishing such reserves would significantly enhance Pakistan’s resilience to global energy disruptions, though they also note that the financial and logistical challenges of building and maintaining storage infrastructure will require careful planning.
