Pakistan, India and China Rush to Oil-Producing Countries
Pakistan approaches Saudi Arabia and UAE for fuel supplies as shortages emerge and global buyers shift to Russian crude.
Pakistan is rushing to Middle Eastern countries including Saudi Arabia and the United Arab Emirates after the closure of the Strait of Hormuz raised fears of an oil shortage in the country. Authorities are seeking urgent fuel supplies from Gulf producers to stabilize the domestic market.
The country is already facing a crisis-like situation in petroleum availability, according to market sources. Long queues of vehicles have started appearing at petrol stations following reports of hoarding and shrinking supplies.
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Petroleum dealers say petrol supply in the market has declined by about 20 percent in recent days. Diesel supply has dropped even more sharply, falling by nearly 50 percent and raising concerns about transport and logistics disruptions.
The shortage fears have triggered panic buying by motorists. Many consumers are rushing to fuel stations as uncertainty over future supply grows.
The supply disruption follows the effective halt of tanker traffic through the Strait of Hormuz, a critical global oil shipping route. Despite assurances from United States officials that the waterway has not been formally blocked, satellite tracking indicates that no oil or product tankers have transited the strait since March 1.
The disruption has immediately placed major oil-importing economies under pressure. A significant share of Asian crude imports normally passes through the narrow Gulf waterway.
China and India, the region’s two largest oil consumers, have already started searching for alternative supplies. Both countries have turned increasingly toward Russian crude as Gulf shipments remain uncertain.
Russian oil exports to China have already reached record levels. In February 2026, China’s seaborne imports of Russian crude climbed to around 1.92 million barrels per day.
However, China still depends heavily on Gulf producers for a large portion of its oil needs. Combined imports from Kuwait, Iraq, the United Arab Emirates and Saudi Arabia reached about 3.4 million barrels per day in February.
China also imported roughly 1 million barrels per day of Iranian crude during the same period. The disruption of Gulf shipping therefore threatens more than one-third of the country’s crude imports.
India has also been forced to reconsider its recent shift away from Russian oil supplies. Indian imports of Russian crude declined from about 1.85 million barrels per day in November 2025 to roughly 1.06 million barrels per day in February 2026.
The decline occurred after mounting pressure from Washington prompted several Indian refiners to scale back purchases of Russian barrels. Instead, India increased imports from Gulf producers.
By February 2026 crude from Iraq, Saudi Arabia, the United Arab Emirates and Kuwait accounted for more than half of India’s total imports of 5.18 million barrels per day. These shipments reached around 2.8 million barrels per day compared with roughly 2 million barrels per day in November 2025.
However, the disruption in Hormuz has now stranded many Gulf cargoes waiting for safe passage. According to officials familiar with regional oil trade, India has already taken Russian crude cargoes that had been stranded at sea due to the ongoing war and geopolitical tensions.
The scramble for Russian barrels reflects the urgent search for alternative supplies among Asian importers. With Gulf cargoes stalled, Russian crude transported through pipelines or Far Eastern ports offers one of the few routes that bypass the Strait of Hormuz.
Market dynamics are already shifting as demand for Russian oil increases. Traders report that the discount on Russia’s Urals crude compared with Brent has narrowed sharply.
Previously Urals traded around $10 per barrel below Brent benchmark prices. The discount has now narrowed to roughly $5 to $6 per barrel as supply becomes tighter.
Floating storage of Russian crude has also declined in recent weeks. Inventories stored at sea reached about 19.6 million barrels in late January 2026 but have since fallen sharply.
By early March only around 7 million barrels remained in floating storage across about 12 vessels. Several of those tankers are already anchored near Chinese ports awaiting instructions to unload cargo.
Recent tanker movements also suggest Russia is expanding its export logistics. At least eight very large crude carriers are currently positioned near the Arabian Sea and Singapore, either traveling toward China or waiting offshore.
These vessels are carrying roughly 12 million barrels of medium sour Urals crude, exceeding the previous record cargo level of 9.8 million barrels set in February 2023.
Most of these shipments are already committed to Chinese buyers. The limited availability of spare cargoes may restrict how much additional oil can reach other Asian importers.
For Pakistan, the situation is particularly sensitive because the country relies heavily on imported petroleum products from Gulf suppliers. Any prolonged disruption in shipments could quickly strain domestic fuel markets.
The sharp drop in diesel supply is especially concerning for the economy. Diesel fuels much of Pakistan’s transport sector, agricultural machinery and industrial logistics.
Energy officials say the government is closely monitoring fuel stocks while seeking additional cargoes from friendly Gulf countries. Securing supplies from Saudi Arabia and the United Arab Emirates is seen as critical to preventing a deeper fuel crisis as the Hormuz disruption continues.