The federal cabinet has decided to boost the strategic oil reserves.
Govt increase oil reserves: The decision was made with the current Middle East situation in mind, and Pakistan State Oil will continue to hold the reserves.
Increases in the nation’s oil storage capacity are urgently needed, according to sources in the petroleum division.
Oil management businesses are mandated by current regulations to maintain oil reserves equivalent to 21 days’ worth of production. The administration believes that this cap should be increased to three months’ worth of reserves.
The choice, according to sources in the petroleum division, can only be made after a thorough examination of the needs of the nation.
Additionally, the government intends to work with foreign specialists to create a fresh framework for strategic oil reserves. The framework will address the nation’s storage capabilities in addition to crude and refined petroleum.