Govt rubbishes rumours of petrol, diesel shortage in Pakistan

ISLAMABAD: The federal government on Wednesday rubbished rumours of petrol and diesel shortage in Pakistan, stating that the oil reserves required by the country were well in stock, ARY News reported.

“Sufficient useable stocks of petroleum products are available in the country to meet needs of petrol [363,085 Metric Ton] for 20 days and diesel [515,687 Metric Ton] for 29 days,” Minister of State for Petroleum Dr Musadik Malik said while addressing a press conference in Islamabad.

Musadik Malik added that these were the other than cargoes arriving and waiting in the sea for berthing. He also warned the elements involved in hoarding petroleum products and creating artificial fuel shortage of ‘dire consequences.’

The minister was of the view that a few people were involved in creating artificial shortage by dumping petrol and diesel with the hope to sell them in future at exorbitant rate.

He said the government would ensure the state writ at every cost and hinted licenses of the people [Oil Marketing Companies], who would be found involved in such illegal activities would be revoked. “I request to those hoarding petroleum products to shun this practice and do not challenge writ of the state.”

Musadik Malik said prices of petroleum products were revised by the government as per the scheduled time, international market and rupee-dollar parity.

Responding to a question, the minister said during the ongoing winter season, the incumbent government, under the leadership of Prime Minister Shehbaz Sharif, ensured better gas management which resulted in better supply to consumers, especially domestic sector as compared to the last 10 years.

Replying to another question, he said an agreement with Russia would hopefully be finalized following which low-cost crude oil will start arriving in Pakistan.

Earlier in February, the oil companies warned the government that a possible petroleum crisis was looming large over Pakistan due to the shortage of US dollars and several other factors.

The OCAC in a letter to the federal government highlighted the challenges being faced by the oil companies due to the shortage of petroleum products, US dollars, rupee devaluation and limited issuance of letters of credit (LCs) for imports.

The advisory council expressed serious concern over the devaluation of the rupee due to which OCAC is facing a loss of over billions on daily basis. Moreover, the unavailability of dollars is interrupting the supply chain and production of petroleum companies.

OCAC urged OGRA to transfer the pressure on the public by an increase in the petrol and diesel prices to recover the marginal profit otherwise the oil industry will continue suffering from the financial crisis.