ISLAMABAD: Pakistan is weighing a strategic move to secure crude oil supplies from Saudi Arabia via the Red Sea route as tensions escalate in the Gulf and uncertainty clouds the Strait of Hormuz. Senior officials at the Petroleum Division indicated that if disruptions persist beyond 10 to 12 days, Islamabad may formally seek inclusion in Riyadh’s preferred buyers list to safeguard energy imports.
The Strait of Hormuz handles nearly 20 million barrels per day of crude oil and petroleum products, accounting for about one fifth of global petroleum liquids consumption. Around 20 percent of global LNG trade also transits the corridor. Analysts warn that prolonged closure could push crude prices to between 100 and 150 dollars per barrel, sending shockwaves across energy dependent economies.
Pakistan remains heavily reliant on Gulf imports, sourcing LNG from Qatar, diesel from Kuwait and crude primarily from ADNOC. Two crude tankers including Pakistan National Shipping Corporation vessel MT Karachi are currently stranded in the Strait, while LPG imports have slowed sharply. Officials confirmed that Pakistan holds roughly 30 days of petrol and diesel stocks, providing only temporary relief.
A high level emergency meeting chaired by Petroleum Minister Ali Pervaiz Malik and Finance Minister Muhammad Aurangzeb reviewed petroleum reserves and contingency measures. Authorities cautioned that if the crisis extends beyond next week, crude, LNG and diesel supplies may tighten significantly, forcing procurement from international markets at higher freight and insurance costs.
Saudi Arabia’s East West Petroline offers a potential alternative by transporting crude from eastern oil fields to Red Sea terminals, bypassing Hormuz. Access to this route could sustain Pakistan’s refinery operations, though LNG supplies would remain exposed due to limited alternative sources.
Pakistan produces about 70000 barrels of crude daily but imports nearly 300000 barrels to meet refinery demand. A prolonged disruption risks fuel price spikes, gas shortages, inflation and pressure on foreign exchange reserves. The unfolding crisis underscores the urgent need for diversified energy routes and expanded strategic reserves to strengthen national energy security.
