Pakistan Seeks New Oil Suppliers Amid Gulf Shipping Risks

The Government of Pakistan is seeking alternative crude oil suppliers to safeguard energy security amid escalating regional conflicts involving the United States, Iran, and Houthi rebels. Federal Minister for Petroleum and Natural Resources Ali Pervaiz Malik convened an emergency meeting with oil refinery executives after threats of closure at the Strait of Hormuz and Houthi restrictions on Saudi oil shipments through the Bab al-Mandab route disrupted traditional supply chains.

Refineries are now contacting international trading companies to secure oil from the United States, Singapore, Nigeria, and Central Asian countries to bypass the Gulf region. While Cnergyico Pakistan Limited has maintained imports from the U.S., Africa, and Central Asia, other firms like the Pakistan Arab Refinery Company, Pakistan Refinery Limited, and National Refinery Limited continue to use the Port of Fujairah in the UAE. However, supplies from Saudi Arabia's Yanbu port have become uncertain, prompting requests for additional cargoes from the UAE.

Concurrent with these strategic shifts, the federal government increased petrol prices by Rs4.93 per litre and high-speed diesel by Rs7.15 per litre. These price hikes have raised immediate concerns regarding rising transportation costs and further inflation across the country.