Islamabad explores oil, gas diversification as geopolitical tensions disrupt Gulf supply routes
Pakistan is considering increasing oil imports from Russia as the ongoing crisis in the Strait of Hormuz continues to disrupt global energy supply chains, according to statements reported by Russia’s state-run TASS News Agency, citing Pakistan’s ambassador to Moscow.
Pakistan’s Ambassador to Russia, Faisal Niaz Tirmizi, said Islamabad is actively exploring alternative energy sources amid heightened uncertainty in Gulf shipping lanes, which are critical for global oil and liquefied natural gas (LNG) trade.
Energy diversification push intensifies
Tirmizi said Pakistan currently produces only around 10% of its energy needs domestically, while the remainder is imported mainly from Gulf countries. He noted that the disruption in the Strait of Hormuz has highlighted the need for diversified energy supply routes.
“Therefore, we began to look for alternatives,” the ambassador was quoted as saying, adding that Pakistan is in contact with Russian authorities regarding potential oil and gas supplies.
He further stressed that the situation has underscored the importance of multiple energy transport routes “not only for Pakistan, but globally.”
Pakistan Stream pipeline project discussed
The ambassador also confirmed ongoing discussions with Russia on long-term energy infrastructure projects, including the development of the Pakistan Stream gas pipeline, also referred to as the North–South pipeline initiative.
“The North-South gas pipeline is a very important initiative, and we will definitely return to it at some point,” Tirmizi said, adding that negotiations with Russian counterparts are continuing.
He noted that once economic cooperation between the two countries gains momentum, the pipeline project could become a “landmark agreement” in bilateral relations.
Regional connectivity and future pipelines
Tirmizi also suggested that Pakistan is considering broader regional energy connectivity, including potential pipeline links from Central Asia and Russia in the future.
“At some point, alternative pipelines from Turkmenistan and even from Russia to South Asia will also be discussed,” he said.
He added that Islamabad’s long-term vision includes strengthening Eurasian connectivity through roads, railways, pipelines, and academic and humanitarian linkages.
“This is what we are truly striving for now,” he said.
Hormuz crisis disrupts global energy flows
The remarks come amid continued instability in the Strait of Hormuz, a critical maritime chokepoint through which nearly one-fifth of global oil and LNG supplies pass.
The disruption has triggered volatility in international energy markets and pushed fuel prices higher in Pakistan.
According to official figures, petrol and diesel prices in the country have recently been increased by nearly Rs15 per litre each. The price of petrol rose to Rs414.78 per litre, while high-speed diesel reached Rs414.58 per litre.
Rising levies add to fuel burden
Sources in the Petroleum Division said the government also increased petroleum levy charges significantly. The levy on petrol rose from Rs103.50 to Rs117.41 per litre, while diesel levy increased from Rs28.69 to Rs42.60 per litre.
The adjustments reflect growing fiscal pressure as Pakistan attempts to manage import costs amid global energy price volatility.
Strategic shift in energy policy
Energy experts say Pakistan’s engagement with Russia signals a broader shift in its energy security strategy, aimed at reducing reliance on Gulf suppliers and mitigating risks from geopolitical chokepoints like the Strait of Hormuz.
However, analysts also caution that infrastructure constraints, sanctions-related complexities, and financing challenges could slow down large-scale pipeline or long-term supply agreements.