What happened
Pakistan formally asked Saudi Arabia on Wednesday to provide an alternative oil supply route through the Red Sea port of Yanbu to keep its fuel chain running after Iran closed the Strait of Hormuz following the United States-Israeli attack on Iran.
Federal Minister for Petroleum Ali Pervaiz Malik made the request to Saudi ambassador Nawaf bin Said Al-Malki in Islamabad, according to a statement by the petroleum division. The minister said the bulk of Pakistan’s energy supplies normally pass through the Strait of Hormuz and that the government was monitoring the situation daily. The Saudi ambassador assured full support, and the division said one vessel had been assured dispatch to Yanbu to lift crude oil for Pakistan.
The move came as Finance Minister Muhammad Aurangzeb announced that Islamabad would introduce energy conservation measures, telling the Senate Standing Committee on Finance that the country had enough stocks for the immediate period and that there would be no rationing. “We are introducing energy conservation measures to curtail demand but there would not be any rationing of these products,” he told the committee, chaired by PPP Senator Saleem Mandviwalla.
Officials said the proposals included shifting higher-education institutions to remote learning and moving petrol and diesel price-setting from a fortnightly to a weekly basis. The final package had not been approved; the committee was to deliberate again on Thursday and Prime Minister Shehbaz Sharif was expected to decide on Friday, officials said. Aurangzeb said the country held about 28 days of petrol and diesel stocks, 10 days of crude oil and LPG equal to 15 days of demand, and that the petrol-monitoring committee had been empowered to take decisions in real time.
Why it matters
Pakistan imports most of its crude and refined products by sea, and officials said diesel supplies were the most exposed because long-term Kuwaiti cargoes normally move through the Strait of Hormuz. According to Dawn, officials said insurance costs for oil companies had jumped from about $30,000 to $400,000 per ship and freight rates had risen sharply, while import premiums also climbed.
The government is preparing a summary for the Economic Coordination Committee that would provide weekly price revisions, compensate oil companies for higher insurance and import costs, and set conservation measures such as mandatory work from home where possible, Dawn reported. The state-run Pakistan State Oil has opened two import tenders each for petrol and diesel outside the strait as a precaution. The Oil and Gas Regulatory Authority and oil marketing companies said they would regulate supplies to retailers based on their eight-month sales record to discourage hoarding.
Pakistan’s fuel bill is also tied to the regional conflict covered in KhabarWire’s report on the record crash at the Pakistan Stock Exchange.
What is still uncertain
The measures were still proposals awaiting approval, and it was not clear how quickly weekly pricing or remote learning could take effect. It was also unclear whether Saudi supplies through Yanbu, or crude from the United Arab Emirates via Fujairah, would fully replace volumes that normally transit the Strait of Hormuz. LNG cargoes from Qatar had been held up, Aurangzeb said, and officials said clearer cost trends would emerge once the London market resumed trading.
Sources & reporting notes
This is a synthesis of published material, not eyewitness reporting. Sources were reviewed on 2026-03-05.
- Dawn — Pakistan requests alternative oil supply route from Saudi Arabia after closure of Hormuz StraitPublished 4 March 2026 · Malik's meeting with the Saudi ambassador, the Yanbu request, the one-vessel assurance and the stock and supply-route details.
- Dawn — Pakistan to take emergency measures on petroleum pricing 'to keep markets liquid'Published 4 March 2026 · Weekly pricing, insurance and freight costs, work-from-home proposals, PSO tenders and OGRA supply guidance.
- The Express Tribune — Finance minister refutes oil shortage rumoursPublished 4 March 2026 · Aurangzeb's Senate committee statement, stock levels, remote-learning proposal and LNG cargo disruption.
- Geo News — Pakistan seeks alternative oil supply route via Saudi Arabia after Hormuz Strait closurePublished 4 March 2026 · Petroleum division statement and Saudi assurances on emergency energy support.
