TRADE & ECONOMY

Govt Orders Emergency Oil Stockpile Amid Iran-Israel War Fears

Amid rising tensions in the Middle East, Pakistan orders emergency stockpile of 140M liters of petrol. OGRA tells oil firms to ensure 20-day reserves. PSO accelerates delivery to June 26.
2025-06-21
Govt Orders Emergency Oil Stockpile Amid Iran-Israel War Fears

The federal government of Pakistan has directed all oil marketing companies to urgently stockpile petroleum products, fearing potential supply disruptions due to the ongoing Iran-Israel war.

According to officials, the Oil and Gas Regulatory Authority (OGRA) has issued directives to oil companies to secure a 20-day stockpile, with the immediate procurement of 140 million liters of petrol.

In an official letter, OGRA emphasized the need for emergency preparedness, citing the “current regional situation” as a key factor behind the precautionary directive.

PSO Takes Swift Action

Following the government’s directive, Pakistan State Oil (PSO) has issued an emergency tender for 70 million liters of petrol, which will be delivered via a tanker scheduled to arrive at Karachi Port by June 2610 days earlier than initially planned.

PSO officials stated that the country would receive an additional 140 million liters of petrol by July 1, helping maintain energy supply continuity. They further indicated that more emergency tenders may be floated, depending on how the regional crisis evolves.

Background and Risks

The Iran-Israel conflict, which escalated into direct missile strikes and proxy attacks, has sparked concerns over global oil supply routes, especially in the Strait of Hormuz, through which a significant portion of the world’s oil passes.

Pakistan, which is heavily reliant on oil imports, faces heightened risk from any disruption in Gulf shipping lanes.

Energy analysts warn that if the conflict deepens, fuel prices may surge globally, impacting domestic markets and increasing inflationary pressures in Pakistan.

OGRA’s Preventive Strategy

OGRA has also asked private oil marketing companies (OMCs) to ensure uninterrupted fuel availability across the country. The regulator is said to be closely monitoring the inventory levels and import schedules of all major players in the oil sector.

Looking Ahead

With the Iran-Israel war threatening to spiral into a wider regional conflict, Pakistan’s early stockpiling efforts reflect a proactive stance to cushion against global energy shocks.

More government measures, including potential fuel subsidies and pricing interventions, may follow if international crude prices spike.