Pakistan has openly acknowledged its acute vulnerability to the global oil shock, conceding that it lacks strategic reserves to shield itself from soaring fuel prices.

The admission came as crude surged to $126 per barrel, the highest level since 2022, amid continued obstruction of shipping through the Strait of Hormuz.

Petroleum Minister Musadik Malik, speaking to Samaa TV, revealed that Islamabad holds only a few days’ worth of crude supplies, underscoring a stark energy security deficit compared with India’s estimated 60–70 days of combined strategic and commercial stocks.

Malik stated that Pakistan has no strategic oil reserves at all, relying solely on commercial stocks. He explained that the country possesses crude sufficient for five to seven days, while refined product held by oil marketing companies could last only 20–21 days.

In contrast, India’s reserves can be released swiftly, providing a crucial buffer against external shocks. He further admitted that Pakistan does not even maintain strategic petrol reserves for a single day, leaving its energy infrastructure exposed. Malik credited India’s resilience to its stronger foreign exchange position and strategic foresight.

He highlighted that India’s $600 billion in reserves and its ability to maintain strategic oil stocks have cushioned the crisis. India also enjoyed fiscal independence, unlike Pakistan, which remains constrained by the International Monetary Fund.

Malik explained that New Delhi reduced taxation as oil prices rose, using its fiscal space to protect consumers. Islamabad, however, was compelled to negotiate discreetly with the IMF for minor relief, as donor-imposed budgetary conditions required heavy levies on fuel to cover deficits.

Malik disclosed that with diesel prices rising three to four times, Pakistan reduced the levy on diesel to zero, shifting the burden to petrol while offering targeted subsidies to motorcyclists.

He said breaking commitments with the IMF would have worsened the situation, so backchannel talks were held to secure an 80‑rupee per litre reduction in the levy.

Despite these measures, the crisis has triggered widespread civil unrest. Prime Minister Shehbaz Sharif recently cut petrol prices by PKR 80 to PKR 378 per litre, but a prior 42.7 per cent hike had already driven costs from PKR 321.17 to PKR 458.41, sparking protests and shortages.

The turmoil in Pakistan coincides with global supply chain paralysis caused by US‑Iran tensions. Since US and Israeli strikes began on 28 February, Iran has restricted access to the Strait of Hormuz, a vital transit point for one‑fifth of global oil and LNG.

While Pakistan reels from the disruption, India has managed to maintain domestic fuel price stability. 

The Indian government has twice revised duties under the Central Excise Act, 1944, in the past month, shielding citizens and oil marketing companies from the global spike that pushed crude from $70 to over $120 per barrel.

ANI