Reports are emerging of diesel and fuel shortages in some parts of the country, particularly the wheat growing districts of Punjab where high speed diesel (HSD) is used during the harvesting season. The Oil and Gas Regulatory Authority (Ogra) however has dismissed these claims of a shortage and has maintained that adequate supplies of petrol and diesel are available to cater to domestic needs.
The story from the other side seems to be very different. The All-Pakistan Petrol Pumps Dealers Association is claiming that none of the oil companies except for PSO are supplying fuel to the dealers and that all private companies have suspended their operations in the province. This is an extremely concerning situation which only further adds to the existing panic surrounding the impending increase in fuel prices.
Meanwhile, the Oil Companies Advisory Council (OCAC) has also backed up OGRA by stating that ample stocks of fuel are available in the country, despite the high demand for HSD during the current harvesting season. During a high-level meeting chaired by Secretary Petroleum Ali Raza Bhutta, it was revealed that 21-day stock of diesel and 31-day stock of petrol was available in the country, and an artificial shortage of diesel was created on the rumours of Rs 52 per litre rise in its prices. It appears that once again we might be looking at OEMs hoarding supplies in anticipation of the removal of subsidies. The last time around they were culpable of doing this was when international prices dropped sharply and the OEMs did not want to sell at those rates.
If this is the case, the authorities should take stern action against the hoarders and conduct raids and suspend the licences of those involved in this illegal activity. Some reports also claim that there are unauthorised dealers in the market—about which the government lacks any data—who have hoarded large quantities of diesel. This must be addressed at the earliest, and cannot be allowed to happen in the future. The government must ensure that OEMs are not allowed to hold the country hostage in such a manner and should set a strong precedent once and for all.
The story from the other side seems to be very different. The All-Pakistan Petrol Pumps Dealers Association is claiming that none of the oil companies except for PSO are supplying fuel to the dealers and that all private companies have suspended their operations in the province. This is an extremely concerning situation which only further adds to the existing panic surrounding the impending increase in fuel prices.
Meanwhile, the Oil Companies Advisory Council (OCAC) has also backed up OGRA by stating that ample stocks of fuel are available in the country, despite the high demand for HSD during the current harvesting season. During a high-level meeting chaired by Secretary Petroleum Ali Raza Bhutta, it was revealed that 21-day stock of diesel and 31-day stock of petrol was available in the country, and an artificial shortage of diesel was created on the rumours of Rs 52 per litre rise in its prices. It appears that once again we might be looking at OEMs hoarding supplies in anticipation of the removal of subsidies. The last time around they were culpable of doing this was when international prices dropped sharply and the OEMs did not want to sell at those rates.
If this is the case, the authorities should take stern action against the hoarders and conduct raids and suspend the licences of those involved in this illegal activity. Some reports also claim that there are unauthorised dealers in the market—about which the government lacks any data—who have hoarded large quantities of diesel. This must be addressed at the earliest, and cannot be allowed to happen in the future. The government must ensure that OEMs are not allowed to hold the country hostage in such a manner and should set a strong precedent once and for all.
