Iran War Triggers Petrol, Diesel Shortage In Pakistan As Pumps Run Dry Across Provinces

Pakistan faces a fuel crisis due to war-related disruptions impacting Iranian fuel supplies, which meet a significant portion of the country's demand, especially in Balochistan.

The conflict has affected both formal shipping routes and informal smuggling, leading to shortages, hoarding, and rationing at petrol pumps across multiple provinces.

Source : Shivank Mishra

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Key points generated by AI, verified by newsroom

• Pakistan faces fuel shortage as war disrupts Iranian supply.
• Nation heavily relies on cheaper, smuggled Iranian petrol and diesel.
• Disruptions affect shipping routes and informal cross-border fuel flow.
• Petrol pumps in multiple provinces are running dry.

Pakistan is grappling with a worsening fuel crisis as the ongoing war involving Iran disrupts key supply channels, leaving petrol pumps across several provinces running dry.

From Balochistan and Khyber Pakhtunkhwa to Punjab and Sindh, motorists are increasingly reporting empty fuel stations and limited supply, triggering long queues and growing public concern.

Heavy Reliance on Iranian Fuel

The shortage is closely linked to Pakistan’s long-standing reliance on fuel sourced from neighbouring Iran. Nearly 35% of the country’s total oil demand is met through illegally smuggled Iranian petrol and diesel.

The dependence is particularly pronounced in Balochistan, where around 80% of fuel consumption is supplied through Iranian oil entering the province through informal routes.

Other regions also rely significantly on these supplies. About 20% of Sindh’s fuel demand is met by Iranian oil, while Khyber Pakhtunkhwa depends on it for roughly 18% of its needs and Punjab for around 13%.

One major reason behind this reliance is price. Iranian petrol sold through informal channels is significantly cheaper than officially imported fuel.

Currently, petrol is being sold across Pakistan at about 266 Pakistani rupees per litre. In contrast, smuggled Iranian petrol is available for roughly 172 rupees per litre, making it far more attractive to consumers and traders alike.

Because Balochistan shares a border with Iran, large volumes of fuel are transported illegally into Pakistan every day. In several border districts, around 10 million litres of petrol and diesel are reportedly smuggled daily and distributed in local markets.

War Disrupts Supply Lines

The ongoing conflict has now disrupted both formal and informal supply chains.

Although Pakistan maintains that it has petrol and diesel reserves sufficient for the next 24 days, the broader situation has become increasingly complicated.

Shipping routes have been affected as the Strait of Hormuz, a crucial global oil transit corridor, faces disruptions due to the conflict. As a result, oil shipments passing through the route are struggling to reach Pakistan.

At the same time, the war inside Iran has interrupted the flow of smuggled fuel across the border, cutting off a major source of supply for several regions.

Pumps Running Dry

The situation appears most severe in Balochistan, where more than 70% of petrol pumps are reportedly out of fuel.

Similar shortages are now emerging in parts of Punjab, Sindh and Khyber Pakhtunkhwa. In several cities, fuel stations are either completely out of stock or are restricting the quantity sold to motorists.

Officials say the crisis is being worsened by hoarding, as some dealers hold back fuel supplies amid fears that disruptions could intensify.

In some areas of Punjab, the shortage has become so acute that petrol pumps have begun rationing fuel. Reports indicate that in several places, motorists are being allowed to purchase fuel worth only 300 Pakistani rupees per vehicle as authorities attempt to manage the dwindling supply.