False alarm on petroleum shortages panic consumers

LAHORE: Buzz of possible gasoline shortages in the country in the last week of the current month due to an expected increase in petroleum prices, coupled with planned import of new type of fuel have driven some consumers to desperate measures, as they chase for places to fill up their vehicles, witnesses said on Thursday.

It is happening despite the fact that both the government and department concerned are emphatically refuting such impression, claiming that fuel stock currently in the country are at maximum level and switching to higher grade fuel has nothing to do with any supply constraints.

Messages about probable petrol shortfall are also increasingly being shared through mobile phones and internet. One such messages reads: “There will be shortage of petrol all over Pakistan in comings days. Keep your car tanks full to avoid any problem. It's mainly due to switching of petrol to RON 92.”

The government; however, has contrasting views on supply of petroleum products in the country. Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi dispelled the impression about any shortfall of POL products, saying full supply of petrol is available in the country.

“There is no shortage of petrol and, in fact, our storage capacity is completely full at this time, Abbasi said.” All future petrol shipments are also on time so there is no reason to think about any constraint in supplies against the demand.”

Talking about opting to new type of fuel, Abbasi said, shift to RON 92 has started and all future imports will be RON 92.

State-run Pakistan State Oil (PSO) in a statement said it would like to dispel the impression that there will be shortage of fuel in the country in the next few days, owing to the decision of the government to import higher grades of mogas and compliance of the same by all the oil marketing companies.

“PSO would like to clarify that as opposed to the claims made; the company has sufficient quantities of mogas and assures the public that there will be no shortage of fuel for its customers at PSO outlets across the nation,” the statement said.

PSO said it will continue to honor its commitment of fuelling the nation under all circumstances irrespective of any commercial benefit as its topmost priority and commitment is to keep the wheels of the country running.

“Being a responsible OMC, the company has and will always strive to ensure a smooth fuel supply to its customers,” the statement said. “All PSO retail outlets are receiving regular fuel supplies and there is no disruption in the company’s supply chain network anywhere in the country.”

The present government has decided to replace RON 87 and has also deregulated RON 95/97. The 92 RON will be imported from November 2016 and the PSO has moved ahead on its plan by awarding contracts out of which the first consignment to bring 55,000 tons would reach the country in November 2016.

The policy steps taken are a paradigm shift for Pakistan’s oil industry and in providing clean fuels that will assist the climate change plans of the country. PSO assures the public that the transition to new improved quality fuels will be a smooth one.