Pakistan Reveals Critical 5-7 Day Oil Reserves, Highlights India's Robust Strategy
Pakistan's petroleum minister, Ali Pervaiz Malik, disclosed that the nation possesses no strategic oil reserves, only commercial stocks sufficient for 5-7 days, unlike India's estimated 60-70 days. This vulnerability emerged as global crude prices surged to $126 per barrel. Pakistan's limited reserves and IMF commitments have led to public protests over fuel hikes, forcing the government to negotiate levy reductions and shift the burden to petrol while protecting motorcyclists with subsidies, contrasting sharply with India's stable fuel prices and fiscal strength.
Pakistan is facing a severe energy vulnerability, as admitted by its petroleum minister, Ali Pervaiz Malik, who stated the country holds no strategic oil reserves, only commercial stocks for a mere five to seven days. This critical situation is exacerbated by global crude oil prices surging to $126 per barrel due to Middle East tensions and disruptions in the Strait of Hormuz. Malik explicitly contrasted Pakistan's position with India, which reportedly maintains robust combined strategic and commercial reserves for an estimated 60-70 days, alongside substantial financial reserves of $600 billion, enabling it to better absorb global price shocks and even reduce taxes. The energy crunch in Pakistan has already translated into widespread public unrest, with significant fuel price hikes, including a 42.7% jump, triggering protests and shortages. Despite Prime Minister Shehbaz Sharif's efforts to reduce petrol prices, public anger persists. In contrast, India has managed to keep petrol and diesel prices largely stable, with its petroleum ministry confirming about 60 days of actual stock cover. Pakistan's government, constrained by commitments to the International Monetary Fund (IMF), has had limited flexibility. Malik revealed engaging in backchannel negotiations with the IMF to ease consumer burden, ultimately securing an 80-rupee per litre reduction in levies. This involved reducing the diesel levy to zero and shifting the entire burden to petrol, while providing targeted subsidies for motorcyclists, underscoring the precarious balancing act Pakistan is performing to navigate its energy crisis without strategic reserves.
