Home Business OMCs, refineries directed to cancel orders of crude oil import from April...

OMCs, refineries directed to cancel orders of crude oil import from April 1

Byco oil refinery

MoE terms refiners as ‘Essential Services’ throughout the country

KARACHI:  The Ministry of Energy (MoE), government of Pakistan, has directed all the Oil Marketing Companies (OMCs) and refineries to cancel all imports orders of the crude oil and motor Gasoline from April 1 2020, the industry source informed Treasure Magazine here on Thursday.

According to a notification issued today “the consumption of Motor Gasoline has dropped significantly due to enforcement of lock down by provincial governments to control spread of COVID-19. As OMCs have sufficient inventory of the products, therefore, all OMCs are requested to cancel their planned imports (April 2020 Onward) and increase their off take from refineries so that operations of  refineries are maintained at an adequate level.”

The notification further said that all OMCs are advised to finalize/update their commercial agreement with the local refineries for required products sourcing.

“Similarly in order to ensure smooth operations of exploration and production companies, refineries are also directed to cancel their crude imports,” the notification said.

The industry sources said that the domestic refining industry has a sufficient stockpile of petroleum products to meet Pakistan’s fuel demand and ensure an uninterrupted supply to meet the nation’s energy needs in the wake of the recent crisis situation as a result of the COVID-19 outbreak.  

The MoE also defined all of the nation’s refiners as an essential service in the midst of the current lockdown, guaranteeing free movement of the industry’s employees, vendors, and contractors to ensure that Pakistan’s refining industry can provide a continuous supply of petroleum products at all petrol pumps of the company across the country.

Pakistan’s domestic oil refiners namely PRL, NRL, ARL, Byco, and Parco have been deemed essential services by MoE’s Petroleum Division through a recent order.

The Refining Industry lauds the MoE’s steps to direct law enforcement agencies to facilitate the unhindered movement of refineries and OMC’s, including their employees, subcontractors/vendors, and vehicles so that an uninterrupted supply of petroleum products in the country can be maintained.

The Domestic refining industry stands tall with Pakistan in showing resilience in the face of the COVID-19 pandemic and will emerge stronger as Pakistan eventually recovers from this crisis.