Pakistan is planning to build strategic oil reserves and expand fuel storage capacity after disruptions linked to the Strait of Hormuz exposed the country’s vulnerability to supply shocks, according to Reuters. About 90% of Pakistan’s oil and LNG imports pass through the strait, yet the country currently lacks emergency petroleum reserves.
The government plans to create bonded commercial storage facilities for foreign suppliers, strengthen refinery and logistics infrastructure, and require companies to maintain minimum fuel inventories. Officials also aim to fund the initiative through a fuel levy expected to raise hundreds of millions of dollars annually.
The move comes as ongoing Middle East tensions and constraints in the Strait of Hormuz continue to threaten global energy supplies and raise concerns about energy security for import-dependent countries like Pakistan.
