[REVISION HISTORY]

Pakistan energy security and petroleum policy developments

Updated 10 times since CLSTR started tracking revisions of this situation.

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2026-09-11 11:59 UTC → 2026-09-11 20:17 UTC · added ~~removed~~

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~~ This upward trend continued with a new OGRA announcement effective September 12, 2026, which raised Petrol (Super) to ~~align domestic costs with~~ Rs375.82 per litre and HSD to Rs403.32 per litre. These revisions are part of a fortnightly mechanism tied to international crude oil rates, Platts rates, and the Pakistani rupee exchange rate. The government attributed the hikes to global market ~~trends,~~ factors, including changes in premiums. These adjustments impact commercial transport, agriculture, and private ~~commuters. In response~~ commuters, adding further pressure to ~~rising diesel costs, the All Pakistan Goods Transport Union has announced a 5 percent increase in freight rates.~~ consumer budgets. 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.~~ 2027. 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.

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