Pakistan Taps Regional Hub Potential with Bonded Oil Storage System

Pakistan is taking steps to boost its fuel security by establishing its first commercial bonded oil storage system, which will allow Gulf producers and international commodity traders to store petroleum products in the country for onward export.

Federal Minister for Petroleum Ali Pervaiz Malik said the proposal aims to position Pakistan as a regional oil storage and distribution hub. Currently, Pakistan lacks a dedicated national strategic petroleum reserve and relies on commercial stocks in the event of disruptions to global supplies.

The proposed system will give the government access to a portion of the stored stocks during emergencies. Refineries are currently required to maintain crude oil stocks equivalent to five to seven days of supply, while oil marketing companies must maintain refined petroleum stocks for 20 to 25 days.