Govt seeks fuel supply assurance from OGRA ahead of Ramazan

KARACHI: The government has instructed the oil and gas regulator to ensure smooth and uninterrupted supply of petroleum products during the holy month of Ramazan and the Eid-ul-Fitr festival, officials said on Friday.

In a letter to the Oil & Gas Regulatory Authority (OGRA), the Petroleum Division asked the watchdog to mobilise its enforcement teams to check that all oil marketing companies (OMCs) keep their retail outlets well stocked and supplied with the fuel throughout the country.

“OGRA may mobilize its enforcement to ensure that all OMCs keep their retail outlets wet and well supplied with the petroleum products,” the letter said. The division also sought the daily demand and supply position of petroleum products from OGRA, it said in a statement.

Industry officials, however, don’t see any shortage of petroleum products in Ramazan when asked about the action of the government to ensure the supply of petroleum products in the country during Ramazan and Eid.

“The demand is dampened in March as the products uplift from refineries has not seen any improvement in the month,”a top official of a local refinery told The News. The move comes amid low demand for petroleum products in the country, as cold weather and smuggling have dampened consumption, according to industry sources.

"The demand is very low, which is reflected from the fact that the sale of Pakistan State Oil (PSO), which is state-owned and the largest oil marketing company of the country, has halved so far in the month compared to the same period of the month in the last year," the official said.

He said the demand in March normally remains high due to the harvesting season in the country, but this year, a cold wave still persists in the upcountry, which would result in a late harvesting season.

The official also said that smuggling of petroleum products from neighbouring countries has also dented the demand of the fuel in the domestic market. "Despite the low demand, there is no issue with the supply situation of petroleum products and the refineries are operating normally."