Pakistan has acknowledged that it lacks strategic oil reserves as global crude prices surge to their highest levels in years due to escalating tensions in the Middle East. The petroleum minister said the country holds only five to seven days of crude oil and about three weeks of refined fuel, leaving it highly exposed to external supply disruptions. In contrast, India maintains an estimated 60 to 70 days of combined strategic and commercial reserves, allowing it to better cushion price shocks.

The minister highlighted that Pakistan’s limited foreign exchange reserves and its commitments under an International Monetary Fund programme have restricted its ability to respond freely to rising fuel costs. While India has been able to adjust taxes and rely on its reserves to stabilise domestic prices, Pakistan has had to negotiate with the International Monetary Fund to reduce fuel levies without breaching fiscal commitments.

The fuel crisis has already triggered public anger, with sharp price hikes leading to protests and long queues at petrol stations before the government announced a significant price cut. Global supply chains remain strained as tensions involving Iran and the United States disrupt shipping through the Strait of Hormuz, a vital route for a large share of the world’s oil supplies. Despite the turmoil, India has so far managed to keep fuel prices relatively stable through tax revisions and reserve management.