Balochistan Suffers Petrol Shortage due To Iran-Israel War

By Salman Khan

Islamabad: Balochistan is facing a petrol crisis due to the halting of petrol supply being smuggled from Iran due to the Iran-Israel war conflict.

Traditionally, Iran has been a key source of smuggled petroleum products, which included petrol and diesel, and Balochistan has been meeting its oil needs through smuggled products from Iran.

Due to the limited war between Israel and Israel, the Iranian oil installations also came under attack by Israel, which also led to a shortage of petrol supply in Iran.

The shortage of petrol in Iran had led to halting the smuggling of petrol to Balchistan, whereas there was no issue of diesel supply, as its smuggling was going on as usual.

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 Meanwhile, the Finance Minister has chaired an Inaugural Meeting of the High-Level Committee, which met on Monday to Monitor Petroleum Prices Amid Regional Tension.

The Prime Minister had formed a committee following the recent attack by Israel on Iran, which led to volatility in oil prices in the global market.

Iran had also threatened to shut down the Strait of Hormuz, which could also lead to a worldwide oil crisis, leading to all-time high crude oil prices in the global market.Strait of Hormuz and Threat to Pakistan Energy Supplies

The experts believed that crude oil prices could touch $100 to $150 per barrel in the global market, which could also affect the oil prices in Pakistan, which is a net importer.

An industry official said that local crude meets only 15 percent of the country, whereas the remaining demand for crude oil and finished products is met by imports.

Strait Hormuz also meets 20 percent of the global market.

The meeting also reviewed the situation of impact of the Iran-Israel war on the domestic oil prices.

The committee reviewed the recent limited war had not resulted in any major hike in global oil prices, but the prices could go up in case Iran shuts down the Strait of Hormuz.

Federal Minister for Finance, Mr. Muhammad Aurangzeb, also chaired a meeting of a committee, and senior representatives from key federal ministries, regulatory authorities, and energy sector experts were also part of the committee.

The formation of this committee has shown the government’s commitment to safeguarding national energy interests while rescuing consumers from higher oil prices. It also ensured market stability during a time of heightened international uncertainty.

The government has given the committee four key tasks, which include closely monitoring the forward/ futures prices of Petroleum Products and the predictability of the supply chain in view of the current conflict in the region.

It will also determine the Forex implications of price volatility for the short and medium term.

The committee has been given a mandate to suggest a plan (if required) to ensure that there are no supply disruptions and the market is well supplied.

The high-level committee will also carry out a detailed analysis of the fiscal impact in the event of a protracted conflict.

The committee held its inaugural meeting on Monday, and the members conducted a detailed assessment of the global and domestic petroleum market situation.

The committee has also expressed satisfaction that there was no immediate issue of oil stocks, as Pakistan currently maintains adequate stocks of petroleum products. It also observed that there is no immediate risk of supply disruption. Nonetheless, members also emphasized the need to ensure continued vigilance following the rapidly changing regional context.

In order to ensure a timely response and effective coordination, the committee also decided to form a working group to monitor developments on a daily basis.

The full committee will also meet weekly to review the situation and submit recommendations to the Prime Minister.

The committee has also designated the Petroleum Division to provide secretarial support and ensure effective implementation of the committee’s mandate.

Finance Ministry, in a statement, said that the government of Pakistan remains fully committed to maintaining energy security, stabilizing markets, and protecting the national interest during this critical time.

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