Petrol stock tumbles to seven-day consumption

ISLAMABAD: In an alarming development, the stock of petrol (motor gasoline) in the country has alarmingly declined to seven days consumption only and this situation is prevailing for the last two months.

In case any consignment of petrol is skipped, the countrymen will be exposed to massive dearth of the product and routine life is feared to come to standstill. This starling disclosure has been unfolded in a letter of Oil and Gas Regulatory Authority (Ogra) written to Director General Oil in the Ministry of Energy dealing with the petroleum sector. The letter written on September 15, 2017 with the caption of low stocks of petrol says that the stock of petrol has declined to seven days cover in the country and it may become critical in next two to three days in case of any delay or skipping of any scheduled cargo of petrol. In the letter, the regulator has also advised OCAC (oil companies’ advisory council) to ensure the import plans as decided in the product review meeting held on September 11, 2017 to avoid any untoward situation. Under the rules, it is mandatory for all oil marketing companies and refineries to have stocks of all the products of MS (petrol), diesel and furnace oil for 20 days consumption.

Industry sources said that at one time the reserves of MS had plummeted to four-day consumption of the country. However, the situation of the stock of diesel has improved to 22 days consumption but the furnace oil stock is still not up to the mark, rather its reserves are equal to 15 days usage. However, the stock of motor gasoline still hovers at seven days consumption.

Dr M Ilyas Fazil, Chief Executive Officer of OCAC, when contacted, said the petrol demand has increased in the country by 15 percent if compared with last year’s demand on account of the low prices of petrol and massive increase in economic activities in the country. However, he said the petrol stock will surge in next two days for over 10 days’ consumption of the country. He admitted that oil marketing companies (OMCs) other than PSO had failed to import its petrol tankers in the last month owing to which the situation has worsened. However, PSO being the largest shareholder succeeded to make the petrol supply intact. He said that private OMCs are going to import their tankers within days and the stock of the said product will go up for over 10 days consumption. He also said that during Eid holidays, oil lorries did not supply petrol because of which the stock in various depots had declined. Now the situation is improving and OCAC is on its toes to further improve the petrol availability situation in the country.

PSO spokesman Rana Muhammad Imran said the company is continuing to manage its imports and refinery purchases smoothly. He said that 170,000 metric tons of petrol imports are in the pipeline which will be available in the next few days. “We assure that there will be no shortage of fuel at PSO outlets,” the spokesman said. He said that despite liquidity challenges on the front, PSO is continuing to supply more than its market share to ensure uninterrupted availability of petroleum products across the country.

The PSO official said that most of the petrol stocks of oil marketing companies have dried out and the whole burden of other OMCs is being borne by PSO. Other OMCs are not importing the product in the supply chair as per their market. He said demand of petrol has swelled in the country manifold owing to which the stocks of MS have reduced to seven days consumption. 

“Our departments are 24 hours functional to meet the peak demand of petrol in the country,” he said. The industry sources said Byco refinery is currently not producing petrol which has also worsened the situation. However, PSO is currently getting the MS product from all the national refineries to avert any untoward situation and consumers of other OMCs are also thronging PSO outlets which is why outlets of the state-owned entity are under immense pressure.