OMAP warns of possible fuel shortage across Pakistan

LAHORE: The Oil Marketing Association of Pakistan (OMAP) has warned that fuel supply across the country could be disrupted if issues related to product allocation by local refineries are not addressed, ARY News reported.

In a letter issued from Lahore, OMAP expressed serious concern over what it described as a deviation by local refineries from previously agreed supply commitments.

According to the letter, oil marketing companies had planned their supply operations based on assurances that domestic refineries would provide petroleum products in quantities agreed during the product review meeting.

However, the Oil Marketing Association of Pakistan said the refineries have not delivered supplies according to those commitments.

Chairman of the oil marketing companies group Tariq Wazir Ali said many companies had refrained from arranging imported cargo shipments after receiving assurances that local refineries would meet the required demand.

He stated that refineries later introduced a new product distribution mechanism without prior coordination with oil marketing companies.

Under the new system, companies are reportedly receiving significantly smaller quantities of petroleum products than expected.

The Oil Marketing Association of Pakistan further warned that alternative supply sources are currently not readily available, which could create serious challenges for maintaining stable fuel availability in the market.

Tariq Wazir Ali also noted that despite having adequate petroleum stocks, refineries are providing reduced supplies to oil marketing companies.

As a result, the mandatory fuel reserves required to be maintained for at least 21 days are gradually declining in Pakistan.

The association cautioned that if the supply situation continues, national fuel stocks could fall to critically low levels in the coming days.

The letter also stated that in the event of a fuel shortage, responsibility would lie with the refineries and the relevant regulatory authorities overseeing the sector.