Briefing to the Senate committee: Oil marketing companies have created an artificial shortage in anticipation of rising prices;
Diesel supply to petrol pumps reduced by 70% and petrol supply by 50%; long queues of tankers reported; oil prices could reach $100 per barrel; fears of rising inflation.
Islamabad (Web News)
Governor of the State Bank of Pakistan, Jameel Ahmad, has warned that due to global conditions, crude oil prices could rise to $100 per barrel, which may lead to an increase in the current account deficit and inflation. Meanwhile, Finance Minister Muhammad Aurangzeb stated that the country currently has petrol stocks for 28 days, crude oil for 10 days, and LPG for 15 days, emphasizing the need for conservation.
He was briefing the Senate Standing Committee on Finance. The Governor further said that during the current fiscal year, the current account deficit may remain around 1 percent of GDP, while inflation is expected to stay between 5 to 7 percent. Foreign exchange reserves are projected to reach $18 billion by June 2026 and approximately $20.5 billion by December 2026. Over the past three years, the central bank has purchased $24 billion from the market.
He also noted that the United Arab Emirates is rolling over its loan on a monthly basis instead of annually, and the International Monetary Fund has been informed of this arrangement.
Finance Minister Muhammad Aurangzeb said that the Prime Minister has formed a committee to review petroleum product reserves. If regional tensions persist, energy consumption may need to be reassessed and energy conservation measures implemented. He added that negotiations with the IMF are now continuing virtually from Istanbul, and the arrival of an LNG cargo from Qatar will further improve the situation.
He said that the Rs 4.3 trillion development budget for the current fiscal year includes the provinces, while a rightsizing committee is working to reduce expenditures. The FBR Amendment Bill 2026 was approved during the committee meeting. Objections were raised regarding the appointment and powers of the Chairman of the Federal Board of Revenue; however, the Finance Minister said matters related to the policy board are under consideration and that accountability will be ensured wherever corruption exists.
The SECP Amendment Bill 2026 was also discussed. Differences emerged over amendments related to the representation of public and private members, and it was decided that further consultation would take place.
Despite adequate oil reserves in the country, oil marketing companies have reduced diesel supply to petrol pumps by 70 percent and petrol supply by 50 percent, creating an artificial shortage, according to sources. The continuous surge in global crude oil prices has increased petrol prices by Rs 40 per liter and diesel by Rs 70 per liter, raising the likelihood of significant price hikes domestically. As a result, oil marketing companies are allegedly withholding stock by creating artificial shortages.
Long queues of oil tankers supplying petrol pumps have begun forming at oil depots of oil marketing companies. Supply caps or allocations are reportedly being imposed. Due to reduced supply, diesel sales have been severely affected in various cities, and it has also been revealed that diesel sales have been suspended in several areas.
President of the Petroleum Dealers Association Lahore, Nauman Majeed, told Roznama Dunya that oil marketing companies are supplying less than required quantities to petrol pumps.