Treasure Magazine

Treasure Magazine

Federal govt orders probe against OMCs regarding petroleum shortage

2 min read
petrol

ISLAMABAD: The federal government has finally taken notice of petroleum products shortage all over the country and has formed a committee comprising of representative of Federal Investigation Agency (FIA) to probe it.

According to the sources, the committee headed by DG Oil will ascertain the elements of hoarding and black marketing of petroleum products by Oil Marketing Companies (OMCs). The committee will also verify the availability of stocks at depots of OMCs and their supply to retail outlets.

Oil Marketing Companies (OMCs) & Refineries operating in Pakistan, Oil Companies Advisory Council (OCAC) said in a statement that current stocks of Petrol (Motor Gasoline) are continuously being replenished through local Refinery’s production & regular arrival of vessels carrying imported Petrol at the two ports namely, Karachi Port Trust (KPT) & Fauji Oil Terminal Company (FOTCO) at Port Qasim Authority (PQA).

It may be noted that in the month of June, a total quantity of around 850,000 Metric Tonne (MT) of petrol is being supplied from the production of local Refineries & Imports to the Distribution & Retail Network of the Country. The current sales of petrol in the Country are exceptionally high (50 % growth) due to easing of COVID-19 lockdown in past few weeks (causing depletion of stocks) & low price of the product.

It is pertinent to mention here that average sales of petrol for period July 2019 to May 2020 (11 months) has been around 600,000 MT/month which translates to sales of around 20,000 MT/day. However, for the reasons mentioned above, a high surge of sales/consumption of 30,000 MT/day has been experienced in first six (06) days of June 2020.

This sudden increase of 50% in consumption is being complemented by the Industry through additional Imports in the months of June & July. While there are few pockets of constrained supplies in some parts of the Country, Ministry of Energy – Petroleum Division (MEPD), Oil & Gas Regulatory Authority (OGRA), Local Refineries & Oil Marketing Companies are working round the clock to mitigate the situation.

In view of adequate quantity of petrol being arranged through the petroleum products supply-chain, the Industry would like to request all worthy Consumers of petrol to fill-up their vehicles as per their normal needs & do not resort to excessive buying. We, as Citizens of Pakistan can together solve our temporary issues through prudence & mutual cooperation.