‘We’re Not India’: Pakistan Admits Oil Vulnerability As Crude Touches $126

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Key points generated by AI, verified by newsroom

• Pakistan lacks strategic oil reserves, relying on limited commercial supplies.
• Rising global crude prices impact Pakistan, unlike India’s stable fuel costs.

Pakistan has acknowledged its vulnerability to rising global oil prices, admitting it lacks strategic reserves comparable to India as crude surges to $126 per barrel amid disruptions in the Strait of Hormuz and escalating Middle East tensions.

In an interview with Samaa TV, Petroleum Minister Ali Pervaiz Malik said the country relies solely on commercial reserves, with crude stocks sufficient for just five to seven days, far below India’s capacity to draw on significantly larger reserves.

We do not even have petroleum reserves for a single day.
We do not have strategic oil reserves.

(Ali Pervaiz Malik, Federal Minister for Petroleum) pic.twitter.com/IVpLXHaCCe

— برهان الدین ‏| Burhan uddin (@burhan_uddin_0) April 27, 2026

Malik highlighted that India maintains an estimated 60–70 days of combined strategic and commercial reserves, alongside stronger financial buffers that allow it to absorb global shocks and even adjust taxes to stabilise prices.

“We don’t have any strategic oil reserves. we only have commercial reserves … We are not India which has 60-70 days of oil reserves that it can release immediately,” he said at interview.

Oil Prices In Pakistan

While fuel prices in India have remained largely stable, the government of Pakistan on Thursday increased petrol and diesel prices while extending targeted fuel subsidies for motorcyclists and the transport sector, aiming to shield vulnerable consumers from the impact of rising global oil prices.

With the approval of the International Monetary Fund, the government led by Shehbaz Sharif raised petrol prices by PKR 6.51 per litre and diesel by PKR 19.39 per litre, effective immediately for the week ending May 8.

During a virtual review meeting, the IMF was informed that Pakistan remains on track to meet its petroleum levy target of PKR 1.468 trillion, with collections over the past 10 months already surpassing the benchmark set for 11 months.

Minister Warns Against Breaching IMF Commitments

Pakistan’s response has also been constrained by its commitments to the International Monetary Fund, limiting policy flexibility. Malik said the government held backchannel talks with the IMF to reduce levies, including shifting the burden from diesel to petrol while offering targeted subsidies to ease the impact on consumers.

Detailing the balancing act, Malik said, “Now, with diesel prices rising up to 3-4 times, we decided to reduce the levy to zero on diesel and shift the entire burden to petrol while protecting motorcyclists by giving them targeted subsidy.” At the same time, he warned against breaching IMF commitments, adding that doing so could have led to even worse consequences.

He noted that these negotiations ultimately helped secure a reduction in levies, saying, “We conducted backchannel negotiations with the IMF and convinced them to reduce the levy by 80 rupees per litre.”