Govt setting up bonded oil storage to facilitate Gulf producers
LAHORE: Federal Minister for Petroleum Ali Pervaiz Malik has said Pakistan is moving to establish its first commercial bonded oil storage system, a facility that would allow Gulf producers and global commodity traders to store petroleum products in the country for onward export, while giving Islamabad access to some of these stocks during emergencies. The minister said the proposal, designed to…
The Federal Minister for Petroleum, Ali Pervaiz Malik, announced Pakistan's plans to establish the country's first commercial bonded oil storage system. This facility would allow Gulf producers and global commodity traders to store petroleum products in Pakistan for onward export, while also providing access to these stocks during emergencies.
The proposal aims to position Pakistan as a regional storage and distribution hub and bolster fuel security. Currently, Pakistan has no dedicated national strategic reserve and relies entirely on commercial oil stocks, which are required to hold crude oil stocks equal to five to seven days of supply, and refined product stocks for twenty to twenty-five days.
The government also plans to deregulate the gas sector, restructure and unbundled the Sui companies, and move towards a single market-clearing price.
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