Page 29 - CMA Journal (Mar-Apr 2026)

Preface sectors. However, it will
h ave a s i gn i c a n t
The oil and gas markets were the rst to react to the Iran- indirect impact across
Israel-US con ict; war is the reason, but more so because of all sectors, as Pakistan's
the effective closure of the Strait of Hormuz, which accounts supply chains depend
for about one- fth of global oil supply; around 20% of the on road transport.
world's lique ed natural gas (LNG) also transits Hormuz. Higher fuel prices mean
Brent crude, the international benchmark, increased from higher costs of moving
$70.6/barrel (BBL) on February 26, 2026, to $109/BBL on April goods from farms to
02, 2026. In the same period, Platts Dubai, the benchmark for m a r k e t s a n d f ro m
medium-sour crude oil used across the Middle East and Asia- factories to consumers.
Paci c, increased from $78/BBL to $117.25/BBL. At one point, Gas remains the leading
the price for Platts Dubai crude reached a record of
s o u r c e o f e n e r g y
approximately $170/BBL. Gas prices also increased from Afia Malik
c o n s u m e d b y
$2.78/MMBtu on February 26, 2026, to $3.3/MMBtu on Researcher and Energy Expert
h o u s e h o l d s a n d
March 12, 2026, but later subsided as energy companies
i n d u s t r y, d e s p i t e
injected gas into storage. Compared with last year, gas prices
increasing rooftop solar installations by households and
remain low (Trading Economics, 2026).
captive solar installations, possibly because most installed
Supply disruptions also raised freight charges and insurance solar is undocumented.
premiums, as operations in the region became riskier. Low
petroleum product inventories, along with infrastructure Figure 2. Final Energy Consumed FY 2025
disruptions, impacted economies globally, especially in Asia,
including Pakistan.
Energy Mix for Pakistan

In Pakistan, oil and gas are the two largest sources of energy:
49% of total energy supplies and 65% of primary energy
consumption. Oil is the primary fuel for transportation,
making up nearly 90% of its needs. This means that any
disruption in supply or prices hits the transport sector
extensively, with limited direct fallout for industry and other

Figure 1. Primary Energy Supplies FY 2025 Figure 3: Sectoral Energy Consumption Fy2025

Source: Pakistan Energy Yearbook, 2024-25.

ICMA’s Chartered Management Accountant, Mar-Apr 2026 27