Amid rising geopolitical tensions between the US and Iran, concerns about potential petrol supply disruptions have been circulating across the country. To curb panic buying and stock manipulation, the Pakistani government and the Oil and Gas Regulatory Authority (OGRA) have rolled out a three-pronged strategy to ensure fuel flows smoothly at all pumps.
If you’ve been concerned about long lines at petrol stations, here is a complete breakdown of why the supply chain felt squeezed and what authorities are doing to resolve it.
The Government’s 3-Pronged Action Plan
To stabilize the oil supply chain and secure national stocks, the government is executing a three-part plan:
1. Boosting Local Refinery Output
Local refineries have been instructed to maximize their production of petrol and diesel throughout July and August. They have also been directed to buy additional crude cargoes immediately to offset recent production shortfalls.
2. Accelerating Fuel Imports
State-owned Pakistan State Oil (PSO) has been authorized to import additional petrol shipments by late July. PSO will also import two dedicated diesel cargoes from Kuwait Petroleum in August. Oil tankers carrying 204,000 tons of fuel are currently en route to Pakistan (due within 10 days), while ships carrying 42,000 tons have already docked.
3. Anti-Hoarding and Depot Investigations
OGRA has launched a nationwide crackdown on fuel hoarding in partnership with local administrations. Investigations are underway regarding nearly 300,000 metric tons of oil stock movements across major supply depots (including PSO Machike, GO Keamari, Attock Shikarpur, and PSO Mehmood Kot). Show-cause notices have already been served to 8 Oil Marketing Companies (OMCs) for violating the required 21-day stock rule.
Read More: Is Another Petrol Shortage Looming in Pakistan? Here is What We Know
Current National Fuel Stock Balance
Despite the spike in sales, official data shows that Pakistan’s current reserves remain within a stable buffer:
- Petrol (Motor Spirit)
Approx. 416,000 Metric Tons available (17 days of supply at approx. 25,400 tons/day).
- High-Speed Diesel (HSD)
Approx. 463,000 Metric Tons available (20 days of supply at approx. 24,000 tons/day).
Why Is the Fuel Supply Chain Under Pressure?
Several factors came together over the past few weeks to create a temporary strain on fuel stocks:
- Middle East Conflict
Heightened US-Iran hostilities have stirred uncertainty regarding oil vessel routes through the Strait of Hormuz.
- Delayed Oil Ships
Three incoming vessels carrying a combined 161,000 tons of fuel missed their scheduled arrival times, drawing down existing national inventories.
- Slower Inflows from Western Borders
Informal fuel trade along western borders slowed down, directing more drivers back to mainstream fuel stations.
- Unexpected Spike in Demand
Petrol (MS) sales jumped by 21% over July targets (reaching 25,400 tons/day), while High-Speed Diesel (HSD) demand soared by 44% above projections (averaging 23,500 tons/day).
The Takeaway for Drivers
There is no need for panic buying. With fresh import tankers docking, refineries boosting output, and OGRA monitoring retail pumps to prevent artificial shortages, fuel availability across major cities is expected to remain stable.
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