Panic buying deepens POL supply crisis amid route disruptions

LAHORE: The disruption in the supply of petroleum products due to route closures following the ongoing protests has turned into a crisis-like situation.

Panic buying by commuters has further aggravated the situation, causing a rapid depletion of stocks amid already low supplies.

The Petroleum Dealers Association has called for a smooth flow of traffic, saying the interruption in the supply chain has raised concern about potential shortages of petroleum products across Punjab, including the provincial capital.

If the current situation persists, it could lead to serious consequences. While petrol consumption has reportedly decreased by 20 to 30 percent due to the closure of motorways, the overall demand remains largely unchanged as the supply chain remains disrupted.

In light of the looming supply crisis, the Oil Tankers Association has urged the government to open alternative routes, highlighting the challenges in delivering oil to depot pumps. They warned that delayed deliveries could exacerbate the crisis and called for alternative routes to be made available for Khyber Pakhtunkhwa, the Northern Areas and the twin cities.

Meanwhile, a spokesperson for the Oil and Gas Regulatory Authority (OGRA) said that OGRA, in collaboration with the Petroleum Division, has reached out to law enforcement agencies through chief secretaries and local administrations to ensure the smooth transportation of oil tankers carrying petroleum products to retail outlets.

A communication channel has also been established between oil marketing companies and district administrations or law enforcement agencies to address transportation issues and mitigate the impact of the crisis.