# Pakistan energy security and petroleum policy developments > Live situation record from CLSTR: https://clstr.news/situations/pakistan-energy-security-and-petroleum-policy-developments > Updated: 2026-09-10T13:13:37.000Z. Sources: 24. Developments: 9. Pakistan is implementing strategic initiatives to improve energy security and reduce import dependence, including offshore drilling by Turkish Petroleum and $5 billion in refinery upgrades. The government has also introduced the Customs Bounded Storage Import Policy 2026 to establish a regional storage hub. While the government works toward gas sector deregulation and uniform pricing, it faces ongoing energy instability. Recent disruptions have manifested as a 3,600 MW power shortfall, leading to nighttime outages. This shortage is attributed to delayed regasified liquefied natural gas (RLNG) cargoes caused by supply disruptions in the Strait of Hormuz linked to the US-Iran conflict. Simultaneously, the Oil and Gas Regulatory Authority (OGRA) has been managing fuel price volatility through more frequent reviews. Following a reduction in petrol prices on September 5, 2026, the federal government implemented successive increases. Effective September 10, 2026, petrol prices rose to Rs367.75 per litre and high-speed diesel (HSD) increased to Rs392.67 per litre. These adjustments, guided by OGRA to align domestic costs with international market trends, impact commercial transport, agriculture, and private commuters. In response to rising diesel costs, the All Pakistan Goods Transport Union has announced a 5 percent increase in freight rates. In the broader power sector, the Independent System and Market Operator (ISMO) has launched a data collection exercise for the Indicative Generation Capacity Expansion Plan (IGCEP) 2027, covering a 10-year horizon through 2037. This occurs amid significant financial pressure from capacity payments, which Energy Minister Sardar Awais Ahmad Khan Leghari noted rose from Rs61,390 crore in 2020-21 to Rs1,80,700 crore in 2024-25. While the government has terminated six IPP agreements to save an estimated Rs4.3 lakh crores, new long-term deals, such as a 30-year agreement with the Jamshoro Coal Power Plant, underscore the complexity of managing circular debt. ## Claims - The price of liquefied petroleum gas (LPG) increased by Rs4.33 per kilogram for September. (corroborated by 2 sources) - Pakistan is experiencing nighttime power outages of up to three hours due to a 3,600 MW shortfall. (single source) - Energy supply disruptions in the Strait of Hormuz due to the US-Iran conflict have delayed RLNG cargoes to Pakistan. (single source) ## Timeline ### 2026-09-10: Pakistan energy sector manages new long-term power deals and capacity planning Pakistan is initiating long-term energy capacity planning for 2027-2037 while simultaneously signing new 30-year power deals despite efforts to renegotiate costly existing contracts. 2 sources. https://clstr.news/cluster/pakistan-energy-sector-manages-new-long-term-power-deals-and-capacity-planning ### 2026-09-09: Pakistan raises petrol and diesel prices amid market volatility Pakistan has increased petrol and diesel prices, with petrol reaching Rs367.75 per litre. The All Pakistan Goods Transport Union has responded by announcing a 5 percent hike in freight rates. 6 sources. https://clstr.news/cluster/pakistan-increases-petrol-and-diesel-prices-2 ### 2026-09-04: Pakistan to deregulate petrol prices by June 2027 Pakistan plans to fully deregulate petrol prices by June 2027. Recent adjustments saw petrol prices drop by Rs3.13 while diesel rose by Rs3.74, reflecting global market volatility and new pricing mechanisms. 7 sources. https://clstr.news/cluster/pakistan-targets-petrol-price-deregulation-by-june-2027 ### 2026-08-30: Pakistan faces power outages and rising LPG prices Pakistan faces nighttime power outages due to RLNG supply delays linked to Gulf disruptions, while OGRA has increased LPG prices for September. 5 sources. https://clstr.news/cluster/pakistan-faces-power-outages-and-rising-lpg-prices ### 2026-08-28: Pakistan moves to strengthen strategic fuel reserves Pakistan is moving to expand strategic fuel reserves and improve storage infrastructure to protect against global supply chain disruptions and volatile international energy prices. 2 sources. https://clstr.news/cluster/pakistan-moves-to-strengthen-strategic-fuel-reserves ### 2026-08-26: Pakistan initiates gas subsidy reforms and petroleum reserve study Pakistan is pursuing energy security reforms, including a review of gas subsidies and a feasibility study by Wood Mackenzie to establish Strategic Petroleum Reserves to mitigate supply shocks. 2 sources. https://clstr.news/cluster/pakistan-initiates-gas-subsidy-reforms-and-petroleum-reserve-study ### 2026-08-24: Pakistan implements energy storage reforms and export diversification plans Pakistan is advancing energy security through new bonded fuel storage policies for foreign suppliers, while the IMF urges timely tariff adjustments to manage circular debt and the government seeks to diversify. 7 sources. https://clstr.news/cluster/pakistan-plans-commercial-oil-storage-hub-to-boost-energy-security ### 2026-08-10: Pakistan introduces new petroleum import policy to attract foreign suppliers Pakistan is implementing the Customs Bounded Storage Import Policy 2026 to attract foreign oil suppliers by allowing them to store petroleum products in bonded facilities without immediate tax obligations. 4 sources. https://clstr.news/cluster/pakistan-introduces-new-petroleum-import-policy-to-attract-foreign-suppliers ### 2026-08-09: Pakistan announces offshore drilling and $5B refinery upgrades Pakistan's Petroleum Minister announced upcoming offshore drilling by Turkish Petroleum and plans for $5 billion in refinery upgrades to boost domestic energy production and reduce import reliance. 5 sources. https://clstr.news/cluster/pakistan-to-begin-offshore-drilling-with-turkish-firm --- Cite as: Pakistan energy security and petroleum policy developments. CLSTR, https://clstr.news/situations/pakistan-energy-security-and-petroleum-policy-developments