Pakistan In Panic As Middle East War Blocks Sea Routes, Causes Fuel Shortage

New Delhi: The Iran war has affected the entire Middle East, disrupting energy supplies. The major reason for this disruption is Iran's closure of the Strait of Hormuz. The closure of this strategically important strait during the war has led to a 15 percent increase in globl crude oil prices, with estimates of reaching $100 per barrel.

The Strait of Hormuz supplies 20 percent of the world's energy supply, and for many countries, it accounts for 100%. The closure of this route has led to panic in Pakistan. The Pakistan government is exploring new alternatives for oil and gas supplies and is also planning to take several major steps domestically.

What steps is Pakistan about to take?

The Pakistan government has appealed to the public to conserve fuel and has asked people to work from home to minimize energy consumption. In addition, Pakistan is taking additional steps, including weekly petroleum price revisions and compensating oil companies for increased insurance and import premiums. Pakistan has taken this decision to maintain liquidity in the market and prevent a sudden oil crisis.

How much oil reserves are left in Pakistan?

According to media reports, neighboring Pakistan has crude oil reserves for only 10 days and petroleum reserves for approximately 28 days. LPG reserves are sufficient for 15 days. Consequently, the suspension of oil imports via Iran and the Strait of Hormuz has posed a significant challenge for Pakistan.

Where does Pakistan import crude oil from?

The Gulf countries are the primary source of crude oil imports for Pakistan. Pakistan imports a significant portion of its imports from Saudi Arabia, the UAE, Kuwait, and Nigeria. But now, due to the war, the route has been closed, threatening the supply of crude oil from here. Therefore, Pakistan is focusing on increasing oil imports from Russia.