Pakistan requests alternative oil supply route from Saudi Arabia after closure of Hormuz Strait – Pakistan

Pakistan has formally requested Saudi Arabia to provide an alternative oil supply route through Yanbu, as concerns grow over potential disruptions to fuel supplies following the closure of the Strait of Hormuz after recent attacks.

Pakistan Seeks Alternative Oil Route

Federal Minister for Petroleum Ali Pervaiz Malik made the request to Saudi Ambassador to Pakistan, Nawaf bin Said Al-Malki, during a meeting on Wednesday. The Saudi ambassador assured full support, according to a statement released by the petroleum division.

Both sides discussed matters of mutual interest and bilateral cooperation, with the minister informing the ambassador about the current situation and the potential implications of the Strait of Hormuz closure on global energy markets. Pakistan is closely monitoring the situation, as the majority of its energy supplies transit through the strait.

Malik emphasized the government’s efforts to ensure the continuity of the energy supply chain for its citizens, noting the importance of support from countries like Saudi Arabia during challenging times. He highlighted assurances from Saudi Arabian sources regarding the security of supplies through the port of Yanbu on the Red Sea.

One vessel has been assured dispatch from Pakistan to the port of Yanbu to lift crude oil, and the minister expressed hope that supplies from Yanbu would be prioritized for Pakistan. He also expressed gratitude for the kingdom’s continued assistance.

The Saudi ambassador reaffirmed Saudi Arabia’s commitment to stand with Pakistan to meet any emergency requirements, emphasizing the strong relationship between the two countries. He stated that Saudi Arabia is fully aware of the evolving situation.

The government decided on Monday to continue passing on the impact of rising global oil prices to consumers under the existing fortnightly adjustment mechanism to avoid a fiscal burden.

A newly created 18-member cabinet committee reviewing the impact of the Strait of Hormuz closure reported no immediate emergency. Saudi supplies of finished products could be routed through the Red Sea, and imports from the UAE via Fujairah are unaffected. However, the committee observed that a prolonged situation could have implications for Pakistan’s energy supply chain.

The committee will continue to meet regularly to monitor supplies and explore alternative import routes, with clearer cost trends expected once the London market resumes trading later this week.