Leaders of the Pakistan Petroleum Dealers Association (PPDA) warned on Thursday that petrol pumps could start shutting down within a few days if their fuel supply is not restored. The PPDA claims that petrol pump companies have reduced fuel deliveries across the country.
Speaking at a press conference at the Lahore Press Club, PPDA Central Secretary General Chaudhry Irfan Elahi called the situation alarming. He stated that diesel supplies have dropped to just 20%, while petrol supplies have also been reduced by 50%.
Elahi further claimed that this disruption is causing fuel prices to rise sharply, with diesel prices increasing by Rs. 17 and petrol by up to Rs. 35.
Jehanzaib Malik, the Lahore President of the PPDA, urged the government to ensure that petrol pumps receive enough fuel to meet their needs.
Malik emphasized that the dealers do not want to create a shortage that makes life difficult for the public. However, he warned, “If the government does not restore supply, petrol pumps will start shutting down from Monday.”
Referring to the Middle East war, Malik noted that the regional situation has worsened. He requested that all stakeholders be taken into confidence, but accused the companies of stopping the fuel supply simply to force a price increase.
Appeal to the Prime Minister
A day before this press conference, a separate group, the All Pakistan Petrol Pump Owners Association, sent a letter to Prime Minister Shehbaz Sharif. The letter raised concerns about a petroleum shortage due to supply delays.
According to this letter, petrol pump companies have created a “quota system” using the ongoing Middle East crisis as a reason. The association warned the Prime Minister: “They are either not providing the product or have limited it to such an extent that we hardly fulfill the need of the public, or fuel stations get dry.”
The association strongly urged the government to step in immediately.
Global Supply Chain Disruptions
The local supply shortage is tied to the escalating conflict between Iran and the US-Israel coalition. The crisis has led to the closure of the Strait of Hormuz, the world’s most critical energy corridor, through which Pakistan’s 98% of crude oil and petroleum product imports pass.
This blockade has stranded two crude oil cargoes of Pakistan and delayed several liquefied natural gas (LNG) shipments from Qatar.
Government Response and Alternative Routes
In response to the growing concerns, the Oil and Gas Regulatory Authority (OGRA) and Finance Minister Muhammad Aurangzeb reassured the public that the country has enough petrol and diesel to cover 28 days of demand, along with a 10-day backup of crude oil and a 15-day supply of LPG.
Moreover, to bypass the blocked Strait of Hormuz, the Pakistani government is working with Saudi Arabia and the UAE to import oil via the Red Sea. Several oil vessels have already arrived or are en route using this alternative channel.
Furthermore, to manage the crisis, the government is introducing broader contingency measures. These include shifting to a weekly fuel price revision system to immediately pass global market shocks to consumers, and rolling out national energy conservation plans, which may involve temporarily closing higher education institutions to reduce fuel demand.
Authorities emphasize that while the international supply chain remains volatile, there is no immediate cause for panic as alternative shipping routes are being secured.
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