Pakistan's Energy Crisis Amid Oil Shock
Analysis based on 6 articles · First reported May 01, 2026 · Last updated May 01, 2026
The global oil market is significantly impacted by the surge in Petroleum prices to $126 per barrel and the restriction of access to the Strait of Hormuz, a critical shipping route. This has led to supply chain paralysis and increased costs for nations like Pakistan, which lacks strategic reserves and faces civil unrest, while India's strong reserves and fiscal independence allow it to maintain domestic fuel price stability.
Pakistan is facing a severe energy crisis, openly admitting its acute vulnerability to global oil shocks due to a complete lack of strategic oil reserves. Petroleum Minister Musadik Malik revealed that Pakistan holds only 5-7 days of crude supplies and 20-21 days of refined products, in stark contrast to India's 60-70 days of combined strategic and commercial stocks. This crisis is exacerbated by a surge in Petroleum prices to $126 per barrel, the highest since 2022, primarily driven by global supply chain paralysis caused by US and Israel strikes on Iran, which led Iran to restrict access to the Strait of Hormuz. Pakistan's reliance on the International Monetary Fund further limits its fiscal flexibility, forcing it to negotiate for minor relief on fuel levies. Despite Prime Minister Shehbaz Sharif's efforts to reduce petrol prices, a prior significant hike has already triggered widespread civil unrest and fuel shortages across Pakistan. In contrast, India has successfully maintained domestic fuel price stability by utilizing its substantial foreign exchange reserves and strategic oil stocks, along with fiscal measures like revising excise duties.
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