Pakistan Minister Acknowledges Lack of Strategic Oil Reserves Amid Rising Prices
‘We are not like India...’: Pakistan minister admits on live TV country has no strategic oil reserves, says stock only for five to seven days
The Economic TimesImage: The Economic Times
In a recent interview, Ali Pervaiz Malik, Pakistan's Minister for Petroleum, revealed that the country has no strategic oil reserves, with only five to seven days of crude supply available. This admission highlights Pakistan's energy vulnerability compared to India, which maintains a significant buffer of 60-70 days of oil reserves amid surging global prices driven by geopolitical tensions.
- 01Pakistan has only five to seven days of crude oil reserves, lacking strategic reserves.
- 02India has 60-70 days of combined strategic and commercial oil stocks.
- 03Rising global oil prices are exacerbated by the ongoing US-Israel-Iran conflict.
- 04Pakistan's strategy includes zeroing the diesel levy to manage rising fuel costs.
- 05Malik emphasized the importance of India's strong foreign exchange position in its energy stability.
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In a candid admission, Ali Pervaiz Malik, Pakistan's Minister for Petroleum, stated that the country does not possess strategic oil reserves, which puts it at a disadvantage amid rising global oil prices. During an interview with Samaa TV, he revealed that Pakistan's crude oil reserves can only last five to seven days, while India boasts 60-70 days of reserves. This stark contrast highlights Pakistan's energy vulnerability, especially with oil prices soaring to $126 per barrel due to geopolitical tensions involving the US, Israel, and Iran. Malik noted that Pakistan's lack of strategic reserves means it can only rely on commercial stocks, which are insufficient to cushion against the ongoing crisis. He also mentioned that the government has decided to eliminate the diesel levy to alleviate the burden of rising fuel prices, shifting the financial strain to petrol instead. This strategy aims to protect low-income motorcyclists through targeted subsidies. Malik's remarks have sparked discussions on social media, with many users reflecting on Pakistan's energy policies and the implications of its defense spending.
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The lack of strategic oil reserves could lead to fuel shortages in Pakistan, affecting transportation and daily life.
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