Govt decides to increase strategic oil reserves

The federal government has decided to increase the strategic reserves of oil, reports said on Thursday.

The decision was taken in view of the prevailing situation in the Middle East reserves will be kept under the Pakistan State Oil.

Sources in the petroleum division said that there is an immediate need to boost the oil storage capacity in the country.

According to the current standards, oil management companies are required to keep 21 days of oil reserves. However, the government feels this limit needs to be raised to three months of reserves.

However, sources in the petroleum division said that the decision can only be taken after a careful study of the country’s requirements.

The government is also planning to engage international experts to develop a new framework for strategic oil reserves. The framework will cover both crude oil and refined petroleum as well as storage capacities in the country.