Govt, PSO explore measures to bolster strategic reserves amid global fuel volatility

According to Business Recorder, the government is considering ways to build up strategic fuel stocks and widen where it buys fuel, as unstable global prices and disrupted shipping lanes add pressure on energy security. The talks took place during a visit by Petroleum Minister Ali Pervaiz Malik to PSO's head office, and the company confirmed the discussions in a statement on Friday. Options under review include buying abroad in advance, spreading supply sources over a longer horizon and expanding strategic buffer stocks.

PSO chief executive Jawwad Ahmed Cheema briefed the minister on the company's financial results, recent operational milestones and future plans. Malik praised PSO for keeping the nationwide fuel supply chain running without interruption despite geopolitical strains, and reviewed its work on energy security and retail modernisation. He also pledged full government backing for an energy sector that puts consumers and economic stability first.

The government also reaffirmed plans to expand storage infrastructure, speed up digitisation and automation, improve supply chain resilience and enhance the customer experience. Separately, a feasibility study for Strategic Petroleum Reserves was launched with Wood Mackenzie on August 25, a step the government said was prompted by the crisis around the Strait of Hormuz and the need to reinforce buffers against supply interruptions.