The caretaker government has decided to increase the strategic petroleum reserves of the country as the situation in the Middle East persists.

The caretaker government has resolved to create a framework for strategic petroleum reserves through the Oil and Gas Regulatory Authority, whereby the regulator will formulate the mechanism in consortium with experts worldwide, according to a national daily.

The new framework will specify domestic crude oil, refined petroleum requirements, and storage, as well as the length of strategic petroleum reserves of relevant items.

This follows Israel’s escalation into Gaza which has so far seen nearly 10,000 Palestinians martyred and millions displaced. This situation has put the global economy at a dangerous juncture while developing countries like Pakistan seek a hedge against supply aftershocks.

Consequently, there is an urgent need to boost petroleum reserve storage capacity since Pakistan imports fuel from other countries. The reserves and how long they can survive will be decided after a thorough review of the country’s requirements.

Source: Pro Pakistani