LAHORE
Pakistan has accelerated plans to establish a national strategic petroleum reserve amid growing uncertainty in the Strait of Hormuz and persistent volatility in global crude oil markets, with energy experts describing the move as essential for safeguarding the country’s long-term energy security.
Although maritime traffic through the Strait of Hormuz has not been disrupted, recurring regional tensions and fluctuating oil prices have exposed Pakistan’s vulnerability as a heavily fuel-importing nation. Analysts say the country currently lacks a government-owned strategic petroleum reserve capable of sustaining fuel supplies for several weeks or months during a major supply crisis.
Energy experts have repeatedly urged successive governments to establish strategic reserves equivalent to at least 60 days of national fuel consumption, arguing that such reserves would cushion the economy against external shocks, supply disruptions, and sudden spikes in international oil prices.
According to official sources, the Ministry of Petroleum has intensified work on a comprehensive strategy that includes constructing large oil storage terminals near ports, developing underground and modern steel storage facilities, encouraging public-private partnerships, and introducing mandatory minimum stock requirements for oil marketing companies.
Legal expert Azhar Siddique said he had filed a petition in the Lahore High Court in 2020, during the tenure of former Chief Justice Muhammad Qasim Khan, seeking the establishment of strategic petroleum reserves as a matter of national security.
With geopolitical tensions continuing to threaten global energy supply chains, policymakers now view the creation of strategic oil reserves as a critical national priority aimed at ensuring uninterrupted fuel supplies, strengthening energy resilience, and reducing Pakistan’s vulnerability to international market disruptions.
