Govt fears massive hoarding of POL products by OMCs

ISLAMABAD: The government has feared the massive hoarding of POL products particularly the Mogas (Petrol) by Oil Marketing Companies (OMCs) anticipating that they are going to curtail the supply of petroleum products to their retail outlets to have financial gains of expected price hike in POL products to be effective from July 1, 2020, which may result in massive shortage of products across the country.

To this effect, the Petroleum Division here on Monday (June 1, 2020) wrote a letter to Ogra asking for the strict action against the oil marketing companies. Orga has been asked to make OMCs bound to maintain their stocks at depos for 20 days as per the requirements of license terms.

The letter written on Monday to Ogra signed by DG Oil Dr Shafi-ur-Rehman Afridi of which the copy is available with The News clearly mentioned saying, “High sales of petroleum product (petrol) are anticipated especially petrol and OMCs are feared to curtail the supplies of petroleum products to their retail outlets in order to acquire financial gains of expected price hike of petroleum product from July 1, 2020 which may create a potential shortage of the product of petrol throughout the country.

And in order to avoid crisis like situation, Ogra being the regulator is requested to direct OMCs for ensuring adequate stocks availability at each retail outlet across the country by PMCs and to bind OMCs to maintain their stocks at depos as per their license term for 20 days.”

And in this regard, letter asked Ogra to deploy vigilance teams across the country to verify OMCs stocks at depos, terminals and retail outlets physically so that uninterrupted supplies to retail outlets are ensured.