Reportedly, Oil Companies Advisory Council (OCAC), the primary representative of the downstream oil industry of Pakistan, on Tuesday reported that ample stocks of motor spirit and high-speed diesel are available in the country.
The council further added that “Since HSD sales have drastically soared in the country due to the harvesting season, OCAC is actively playing its role to effectively manage the [surge in] demand in consultation with the industry, OGRA and Ministry of Energy, and Energy Ministry.”
Nazir Abbas Zaidi, Secretary-General OCAC said that, “Pakistan is an energy deficient country, therefore deficit in fuel supplies is catered through imports. As a result of constantly increasing imports volume and infrastructure constraints, there are challenges at ports owing to congestion/bunching of vessels, etc. However, OCAC is effectively striving to handle these challenges in collaboration with OGRA by suggesting recommendations to ensure that the fuel supplies remain streamlined. Hence, it is vital to avert uncertainty and abnormal buying patterns amidst ambiguous speculations.”
The council further added that to meet the growing demands of diesel, some cargoes were lined up at the port while others were set to reach the shores of Pakistan very soon.
Oil Companies Advisory Council, the primary representative of the downstream oil industry of 🇵🇰, has reported that ample stocks of motor spirit and high-speed diesel are available in the country.
Though: It's vital to avert uncertainty in pricing & end abnormal buying patterns
— Economy of Pakistan (@Pakistanomy) April 26, 2022
Separately, the Oil and Gas Regulatory Authority also rubbished reports of diesel shortage in the country. The oil regulating agency added that it was “monitoring the situation with the help of law enforcement agencies.” The agency notified that strict action would be taken against hoarders and anyone found guilty of stocking the commodity to create an artificial shortage.
Owing to the alleged artificial shortage of the petroleum commodity Nouman Ali Butt, secretary-general of the All Pakistan Petrol Pumps Dealers Association, underscored that a prompt response needed to be initiated; otherwise, “Dealers will bear huge losses if private companies continue to remain shut and it will eventually impact the overall fuel supply in the country” he added.
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It is pertinent to mention that Pakistan State Oil, on 25 April set aside claims of fuel shortage in Karachi and its peripheral areas.
Oil prices to go up
On Sunday, Pakistan and the International Monetary Fund reached an understanding to extend the long-standing bailout program by up to one year and increase the loan size from $6 billion to $8 billion. However, it was not without some compromises. IMF put forth a series of preconditions that Pakistan has to meet before IMF releases the pending installment of loans.
It demanded steep fiscal adjustments, discontinuation of the amnesty scheme, increase in power tariffs, and restoration of taxes before the country could expect progress on the release of funds promised by the IMF. As a result of the commitments made under the IMF program, fuel prices would soar, forcing the price of diesel to skyrocket.
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Moreover, as the country is fast approaching the summer harvesting season, the high demand for diesel will also contribute to driving the price of high-speed diesel. The price of HSD is expected to be increased by the end of this month.