The Pakistani government has tightened control over furnace oil exports, requiring refineries to obtain prior approval before shipping the fuel abroad amid rising regional tensions and supply concerns.
The directive was issued by the Ministry of Energy’s Petroleum Division following a decision by the Prime Minister’s Committee on the Monitoring of Petroleum Prices, which will now review any proposed export shipments of furnace oil.
Authorities said the move aims to safeguard domestic fuel availability as global oil markets face volatility linked to escalating geopolitical tensions in the Middle East.
Regional Conflict Disrupts Global Oil Supply
The policy shift comes amid concerns that the ongoing Iran–Israel conflict could disrupt global oil supplies. Shipping routes through the Strait of Hormuz, one of the world’s most important energy corridors, have already been affected.
Roughly 20% of global oil shipments pass through the Strait of Hormuz, meaning any disruption can quickly trigger supply shortages, higher freight costs, and sharp price fluctuations in international markets.
Industry groups have advised oil tankers to avoid the area or exercise extreme caution due to rising security risks in the region.
Pakistan’s Heavy Dependence on Imported Fuel
Pakistan relies heavily on petroleum imports, particularly from Gulf countries. Government data shows that during the first eight months of the current fiscal year, Pakistan imported about 3.6 million metric tonnes of petrol and around 1 million metric tonnes of high-speed diesel to meet domestic demand.
Any disruption in Middle Eastern supply routes could therefore quickly affect Pakistan’s fuel availability and increase domestic energy costs.
Oil Prices and Freight Costs Rising
The regional conflict has already pushed global oil prices sharply higher.
Recent market data indicates:
- High-speed diesel prices rose about 34% to $118.51 per barrel
- Petrol prices increased by around 27% to $90.02 per barrel
Freight costs for transporting refined petroleum products have also surged, with tanker rates increasing significantly as vessels face delays and security risks in the Gulf region.
Government Moves to Secure Domestic Supplies
Officials say the export restrictions are a precautionary step to ensure an adequate domestic fuel supply during a period of global energy uncertainty.
If supply disruptions persist or international prices continue rising, Pakistan could face higher fuel import costs and additional pressure on its economy.
By requiring approval for furnace oil exports, authorities aim to retain flexibility in managing local fuel stocks while monitoring developments in the global energy market.