A federal fuel committee, investigating the recent oil crisis in Pakistan, has found nine Oil Marketing Companies (OMCs) guilty for hoarding. In its report, the committee said these companies deliberately caused a nationwide oil shortage. The eight-member committee also said it visited oil depots of these companies and found that they had excess stock of fuel.

The committee, headed by Director General Oil Shafiur Rehman Afridi, has blamed Total Parco, Shell Pakistan, Gas and Oil Pakistan, Byco, Attock Oil Pakistan, Attock Petroleum, Be Enegy, Puma Energy and Hascol Petroleum for this crisis. The federal government formed this committee earlier this month after petrol became unavailable for common consumers across the country.

Committee Recommendations: 

The committee has recommended strict action against mentioned OMCs, including cancellation of their licenses and arrest of their officials. The committee proposed these actions if these companies failed to improve their performance within next month.

The interim report further suggested that refineries need to ensure maximum production during June and July. The committee has also found regulation violations in terms of the storage of petroleum products. “The committee has found violations of safety measures and regulations at a few of the private storage companies such as ATC, ZY and Co, PMC, and Al-Noor,” the report read.  

On June 11, the committee recommended case registration against heads of two OMCs for black marketing and hoarding. The committee filed its request to the assistant commissioner of the Sub-Division Harbour of Karachi’s West district for registration of cases.

According to the government sources, these oil companies pocketed billions of rupees in the past after a price increase in petroleum products. However, these OMCs have tried to stave off inventory losses by halting supplies to retail outlets, shifting the whole oil supply burden on Pakistan State Oil (PSO), the sources said. 

Earlier, Prime Minister Imran Khan said the oil companies responsible for shortage will not be spared. The OMCs will be served a notice seeking an explanation over the artificial scarcity. 

Under the committee’s recommendations, it will be essential for companies to maintain their fuel stocks for at least 21 days.   

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