advises the public not to pay attention to rumours, as the oil supply situation in the country remains stable
People wait their turn to get fuel at a gas station in Karachi, Pakistan June 2, 2022. Picture taken June 2, 2022. PHOTO: REUTERS
The government on Thursday ordered all provinces to direct deputy commissioners (DCs) to conduct inspections within their respective jurisdictions to monitor the illegal hoarding of petroleum products for profit as tensions in the Middle East continue to escalate.
The statement came in the wake of reports citing an oil shortage in the country. Leaders of the Pakistan Petroleum Dealers Association (PPDA) sounded the alarm, claiming that the oil companies have reduced supply and warned that petrol pumps may start shutting down within the next few days if supply is not restored.
Central Punjab President Nauman Majeed said petrol supply has also been reduced by 50%. He claimed that some private companies had started hoarding petroleum products.
A statement issued by the Oil and Gas Regulatory Authority (OGRA) highlighted concerns over possible hoarding attempts, with reports suggesting that some elements may take advantage of the current situation to take advantage of the fuel shortage.
“To curb such practices, all provincial chief secretaries have been asked to direct the Deputy Commissioners (DCs) to conduct inspections within their respective jurisdictions. Any premises found involved in illegal storage of petroleum products will be sealed and action will be taken in accordance with the law,” OGRA said.
Meanwhile, OGRA’s team is actively monitoring the situation on the ground. Inspections are carried out at oil depots and retail outlets to ensure a smooth supply of petroleum products and to prevent mishandling.
“The public is advised not to pay attention to rumors and continue normal consumption patterns as the oil supply situation in the country remains stable,” the statement added.
The government has assured citizens that the country has sufficient stocks of petroleum products to meet national demand and that there is no need for panic buying or hoarding.
Read more: Iran War: Pak plans to import oil via Red Sea
“In view of the prevailing geopolitical situation, the authorities are closely monitoring the petroleum supply chain to ensure uninterrupted availability of products across the country. The existing stock position remains comfortable and well within the prescribed requirements,” OGRA said.
The authority also stressed that strict action would be taken against any person or entity found involved in illegal hoarding or storage of petroleum products at unauthorized locations, especially at locations other than licensed oil depots and retail outlets of oil marketing companies (OMCs).
Oil for 28 days
The Oil and Gas Regulatory Authority has already clarified that it has large stocks of oil to meet the country’s 28-day consumption requirement, following precautionary measures to import excess fuel.
However, due to the US-Israeli attack on Iran, two cargoes of crude oil have been stuck after the closure of the Strait of Hormuz. This channel is 33 km wide and one fifth of the world’s oil passes through it.
The Strait of Hormuz was used to ship an average of 20 million barrels of crude oil, condensate and fuel per day last year. OPEC members such as Saudi Arabia, Iran, the United Arab Emirates, Kuwait and Iraq rely on this shipping route to export most of their crude oil, primarily to Asia. “We have ample stocks of petrol and diesel to meet the country’s requirements,” officials said, adding that the country could meet consumers’ fuel needs for 28 days.
However, the government has planned to import oil through the Red Sea from Saudi Arabia and the United Arab Emirates (UAE) due to the closure of the Strait of Hormuz, while switching to a weekly oil price review.
Read also: Fuel saving plan unveiled as war in Iran chokes supplies
Sources said Express Pakinomist that the government is currently working on various measures to ensure uninterrupted oil supply amid the US-Israel-Iran war.
Pakistan imports about one million barrels of oil on a monthly basis, with Saudi Arabia being a major oil exporter to the country. The UAE also exports oil to Pakistan.
Sources said UAE-based firm ADNOC and Saudi Aramco will supply oil to Pakistan by bypassing the Strait of Hormuz. One refinery has already imported a few shipments through the Red Sea. A few oil tankers have reached Pakistan while others are on their way.
As another measure, the government plans to move the oil price review from the existing 14-day system to a weekly basis. The aim is to counter dealers’ hoarding of oil products.
Sources said the government had anticipated a possible rise of Rs50 per liter in oil prices following the recent war in the Gulf region.
