Federal Minister for Petroleum Ali Pervaiz Malik has said that greater focus must be placed on local oil and gas reserves, stressing the need for improved energy security and infrastructure development.
Speaking at a ceremony in Islamabad on Wednesday, he said global developments cannot be controlled by Pakistan and the nation must remain prepared for such circumstances.
He said that the refinery upgrade scheme has remained pending for the past three years. The federal minister said energy supply had been affected due to the closure of the Strait of Hormuz, while insurance and security costs had also increased, resulting in additional payments.
He stated that diesel and petroleum prices had reached historic highs, with Dubai crude oil touching $170 per barrel for the first time.
Malik said the circular debt in the gas sector remained a major challenge, although steps had been taken to prevent further increase.
He added that the Prime Minister and Field Marshal had played an important role in ensuring alternative supply arrangements during regional tensions.
He said Qatar and Saudi Arabia had extended cooperation, with Saudi Arabia supplying petroleum products from Yanbu.
The federal minister said Pakistan had imported petroleum products worth $2 billion over the past two months and required $550 million worth of crude oil every month.
He said consultation had been held on developing strategic petroleum storage, which would require $300 million in storage costs.
The federal minister stressed the need to move beyond a 21-day storage capacity and to reconsider the bonded customs storage policy.
He added that Turkish Petroleum had opened an office in Pakistan.
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