Minister compares India’s stability with Pakistan’s fuel crisis
Pakistan is facing mounting pressure from a sharp fuel price shock, with Petroleum Minister Ali Pervaiz Malik openly acknowledging the country’s vulnerabilities and contrasting them with India’s relative stability.
The remarks come after oil prices surged to $126 per barrel following disruptions linked to tensions in the Strait of Hormuz, exposing structural weaknesses in Pakistan’s energy and financial buffers.
Minister highlights India’s advantage
Malik pointed to India’s strong foreign exchange reserves and strategic oil stockpiles as key factors that helped it absorb the global oil shock.
“India doesn’t just have 600 arab dollars worth of reserves but they also maintain strategic reserves. This helps them cushion this crisis. Besides, they are not part of IMF programme and they tried to insulate themselves by reducing taxation as oil prices soared … they had the fiscal space to do that,” he told a local news channel.
India has managed to keep fuel prices relatively stable through tax adjustments, diversified crude sourcing, and the use of strategic reserves.
IMF constraints limit Pakistan’s response
The minister blamed strict conditions set by the International Monetary Fund for restricting Pakistan’s ability to respond effectively.
He said the government had committed to maintaining petroleum levies as part of its bailout programme, limiting flexibility during the crisis.
“Now, with diesel prices rising up to 3-4 times, we decided to reduce the levy to zero on diesel and shift the entire burden to petrol while protecting motorcyclists by giving them targeted subsidy. However, had we broken our commitment with IMF and increased our losses, the consequences would have been worse. We conducted backchannel negotiations with IMF and convinced them to reduce levy by Rs 80 per litre,” Malik said.
Short-term relief amid deeper challenges
The government recently cut petrol prices by Rs 80 per litre, bringing it down to Rs 378, a move backed by Prime Minister Shehbaz Sharif.
However, the relief comes amid volatility, with fuel prices having been raised just a day earlier due to rising global rates.
Limited reserves expose vulnerability
Malik admitted that Pakistan lacks the strategic reserves needed to withstand prolonged disruptions.
“We only have commercial reserves. We have crude worth five to seven days. And the refined product with OMCs can only last 20-21 days. We are not like India which has 60-70 days of reserves and can release it with just a single signature.”
The contrast underscores Pakistan’s limited preparedness compared to India’s deeper reserves and stronger fiscal position.
🇵🇰🗣🛢No Petroleum Reserves for Even a Single Day, says #Pakistan’s Federal Minister for #Petroleum, Ali Pervaiz Malik,
❗️Adding that the country is not like 🇮🇳 #India with 60–70 days of reserves that can be released with a single signature, and warning that people still do not… pic.twitter.com/RcwHbH1YxX
— Mahalaxmi Ramanathan (@MahalaxmiRaman) April 28, 2026
Energy crisis highlights structural imbalance
The ongoing crisis has highlighted broader economic challenges, including reliance on external funding, limited reserves, and policy constraints.
With global uncertainties continuing, Pakistan’s ability to manage future shocks remains under scrutiny, while India’s diversified energy strategy has helped shield it from the worst impacts.
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