Due to inadequate imports and limited local availability, the Oil Companies Advisory Council (OCAC), a representative body of the downstream oil industry, has predicted a shortage of petroleum products in Pakistan in the coming days.
In a letter sent to the Oil and Gas Regulatory Authority on November 3, OCAC stated that a deficit of 210,000 MT of High-Speed Diesel (HSD) and 147,000 MT of Motor Spirit (MS) was identified at a product review meeting for the month of November held on October 13 and 14.
“The meeting emphasized that HSD imports in November may be challenging due to the extremely high premiums and limited availability of molecules on the international market; thus up to this point, just PSO has booked laycans of 220,000 MT and 10,000 MT by Stream Petrol.
However, it is troubling to note that MS import laycans corresponding to the anticipated sales volume and stock cover have also not been booked,” the letter from OCAC stated.
Lack of gas in the winter: The body stated that import plans should have been finalized by importers “but as of today, there is a deficit in the import plan.
” SNGPL claims that it will distribute 100,000 LPG cylinders.
It stated, “This critical issue was also highlighted in the meeting held on November 1 with industry representatives, but no firm commitments have been received in writing from the importing Oil Marketing Companies (OMCs).”
According to OCAC, numerous OMCs have consistently carried low fuel product stocks since October 2022 despite having much higher than anticipated October sales.
“Product was not available for use during the month it was intended for because some OMCs who were supposed to bring imports for use in October received their shipments in the final week of October.
In a similar vein, it stated, “some OMCs that were permitted imports in the preceding month for use in the following month have already consumed the parcels in advance.” Pakistan may see a shortage of petroleum products in the near future, the OCAC warns.
Low use of MS and HSD: “Considering the ongoing sales trend and the number of days cover currently being maintained by the OMCs, we foresee product availability challenges in various pockets of the country in the days to come, due to inadequate imports and limited local avails,” it added.
The July-Aug PDL collection shortfall stands at Rs93 billion.
“For strict adherence to their imports plan along with written confirmation in order to avoid any untoward situation,” it urged the Oil and Gas Regulatory Authority to investigate this matter and provide importers of OMCs with the necessary instructions.