The Pakistani government has imposed new restrictions on the export of furnace oil, requiring refineries to obtain prior approval before shipping the product abroad. The decision was taken by the Prime Minister’s Committee on the Monitoring of Petroleum Prices amid growing global energy market uncertainty.
Under the new directive, oil refineries must seek clearance from the committee before exporting furnace oil. The Ministry of Energy’s Petroleum Division communicated the decision to the Oil and Gas Regulatory Authority (OGRA), instructing that exports will only proceed after formal approval from the committee.
The move is aimed at safeguarding domestic energy supplies during a period of heightened geopolitical tensions in the Middle East.
Regional Conflict Raises Supply Risks
The restrictions come as global oil markets face volatility due to the ongoing conflict involving Iran, the United States, and Israel. The crisis has disrupted shipping routes and increased uncertainty around oil supplies.
A key concern is the Strait of Hormuz, a critical maritime route through which roughly 20% of global oil supplies pass. Any disruption in this corridor can lead to supply delays, higher freight costs, and sharp price movements in international energy markets.
Freight costs for transporting refined petroleum products have also surged as shipping companies take extra precautions or avoid the region entirely.
Pakistan’s Dependence on Imported Fuel
Pakistan remains heavily dependent on fuel imports from Gulf countries, making the country vulnerable to disruptions in the region.
Data shows that during the first eight months of the current fiscal year, Pakistan imported about 3.6 million tonnes of petrol and one million tonnes of high-speed diesel, accounting for a significant share of domestic fuel consumption.
The government fears that continued disruptions in Middle Eastern supply routes could push fuel prices higher and create supply shortages.
Rising Oil Prices Add Pressure
Global crude prices have already surged amid the conflict, with refined fuel prices and shipping costs rising sharply. Industry reports indicate that freight rates and risk premiums for tankers operating in the region have increased significantly.
By tightening control over furnace oil exports, authorities aim to maintain sufficient domestic reserves and stabilise Pakistan’s energy supply during a period of global market instability.
