Oil smuggling threatens refineries in Pakistan

ISLAMABAD: The smuggling of oil in Pakistan resulted in significant reductions in domestic diesel consumption which led to record-high diesel stocks at oil refineries in the country, ARY News reported on Tuesday.

The Oil and Gas Regulatory Authority (OGRA) has sent a letter to the DG Oil Petroleum Division, revealing conflicts in oil stock figures.

While refineries reported having 770,000 tons of diesel as of August 30, OGRA’s figures suggest actual reserves are 664,000 tons. Refineries claim reserves of 759,000 tons, but OGRA asserts that the accurate figure is lower.

As per OGRA, currently there is enough diesel for 44 days of domestic demand.

To address the issue, OGRA has instructed oil companies to store cargo in bonded facilities until mid-September to avoid refinery holdup costs.

Additionally, Pakistan State Oil (PSO) has been directed to delay a 55,000-ton shipment and revise December cargo plans.

OGRA has called an emergency meeting with senior oil company officials to address the ongoing supply chain crisis and align on corrective measures.