Middle East Conflict Disrupts Oil Supply, Pakistan Faces Severe Energy Shortage
Pakistan reels from fuel crisis as Middle East conflict disrupts oil supply, causing shortages and price hikes.
Pakistan is grappling with a severe fuel crisis, exacerbated by disruptions in oil supplies caused by the ongoing Middle East conflict. The Shahbaz Sharif government has struggled to manage the fallout from interruptions in shipments through the Strait of Hormuz, leaving citizens waiting for hours at petrol stations and paying significantly higher prices per litre.
According to a report in Pakistan’s The Nation, petrol prices have risen by around 55 rupees per litre in just two weeks. In response, the government is reportedly considering measures such as reducing the workweek to four days, cutting fuel allocations for state vehicles, and shifting school classes online to cope with the shortage.
The crisis comes amid a global surge in crude oil prices, with US crude futures experiencing their largest weekly increase since 1983, rising 36 percent, while Brent crude climbed around 18 percent to $109 per barrel. Nearly 20 million barrels of oil, worth roughly $500 billion annually, pass through the Strait of Hormuz, making Pakistan particularly vulnerable to supply disruptions.
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Pakistan relies heavily on liquefied natural gas (LNG) imports from Qatar and the United Arab Emirates, which together account for 99 percent of its LNG supply. Limited storage capacity and procurement flexibility have intensified the impact of the shortage, prompting the government to request rerouted crude shipments from Saudi Arabia through the Red Sea ports of Yanbu—a longer and more expensive route.
The article also highlights a diplomatic tension, noting that while Pakistan has publicly taken a hard stance on the Middle East conflict, it is simultaneously appealing to Riyadh for assistance in securing oil supplies. Analysts suggest that the crisis underscores the urgent need for Pakistan to declare an energy emergency, establish strategic petroleum reserves, and implement transparent energy rationing.
Experts further argue that Pakistan must accelerate investments in renewable energy and domestic gas development. The current crisis, they contend, demonstrates that the country cannot endure even a short-term interruption in global energy supplies, making immediate reforms essential to prevent further economic and social disruption.
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