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Fuel Shortage Warning in Pakistan: Low Stocks & Import Delays Threaten Supply (July 2026)


 

Article: Fuel Shortage Fears Grip Pakistan Amid Low Stocks and Import Delays

As of mid-July 2026, severe concerns over a potential fuel shortage are growing across Pakistan. Following the recent sharp increase in petroleum prices—which pushed petrol to Rs 310.71 per litre—oil dealers and industry officials are warning that a combination of low domestic reserves, import delays, and financial gridlock could lead to dry pumps in major cities, including Karachi, Lahore, and Islamabad.

The Core of the Crisis

According to the Oil Companies Advisory Council (OCAC) and the Pakistan Petroleum Dealers Association (PPDA), several structural and financial factors are currently straining the country's fuel supply chain:

·        Critically Low Inventories: Pakistan currently holds roughly 370,000 to 379,000 tonnes of petrol. Given the recent surge in consumer demand, this stock is sufficient for only 14 to 15 days.

·        Supply Limits by OMCs: Oil Marketing Companies (OMCs) have started imposing allocations on petrol pumps, restricting supplies based strictly on average monthly sales. Dealers warn this allocation system is quickly leading to reduced fuel availability on the ground.

·        Customs and Import Delays: Expected fuel cargoes have faced severe bottlenecks. One planned import cargo of 37,000 tonnes failed to materialize, and another joint OMC import was reportedly canceled. Furthermore, delays in customs clearance through the WeBOC system are preventing the fuel that has arrived from reaching the local market on time.

·        Financial Strain on OMCs: The industry is currently waiting on the government to release Rs 66.7 billion in outstanding Price Differential Claims (PDC). These frozen funds are severely limiting the ability of oil companies to finance fresh imports amid rising global free-on-board (FOB) costs.

Prime Minister Directs Crackdown on Hoarding

As public anxiety leads to panic buying, the federal government has stepped in to prevent the situation from spiraling. On July 16, 2026, Prime Minister Shehbaz Sharif chaired a high-level meeting in Islamabad, ordering provincial authorities to take strict and immediate action against anyone creating an artificial shortage.

The Prime Minister emphasized that while global regional tensions are impacting the economy, the government currently has sufficient stocks to manage the immediate demand. Authorities have been directed to finalize a comprehensive contingency plan to ensure uninterrupted fuel supplies to upcountry areas and to protect the daily commutes of motorcyclists and transporters.

What Consumers Should Expect

For the average citizen, the coming weeks require careful planning. With petrol sales jumping 16% above projections in early July due to panic buying, consumer behavior is inadvertently adding pressure to the fragile supply chain.

While High-Speed Diesel (HSD) stocks remain relatively stable at around 500,000 tonnes, petrol users should remain cautious. The OCAC has urged the government to expedite the pending Rs 66.7 billion payments and clear import bottlenecks immediately. Without swift intervention from the Petroleum Division and OGRA, the country risks a repeat of previous supply dry-outs.

 


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