Islamabad, Oct 27: OGRA Approves Import of 266,000 Metric Tons of Diesel Amid Rising Local Sales. The Oil and Gas Regulatory Authority has denied reports that the nation has sufficient supply of HSD in its refineries and doesn’t require imports from other countries.
It explained that because of the Federal Government’s anti-smuggling campaign and the beginning of the agri-season, HSD sales in October 2024 are up 21% from the anticipated sales. According to the most recent sales and stocks report, the strong sales have depleted the stockpiles that refineries had reported as being high, leaving only enough to cover 19 more days of national consumption and sales.
The sector regulator, OGRA, has been actively building up inventories since September in preparation for the agricultural season. Planned PARCO maintenance shutdown, as well as the expected rise in demand brought on by the government’s strong enforcement of the law against illegal gasoline smuggling.
Stocks rose as a result, although some industry participants briefly criticized them in the public. Thus, OGRA’s strategic buffer has proven crucial in preserving supply continuity and averting possible shortages, demonstrating the agency’s dedication to guaranteeing national energy security.
It was decided to permit the import of approximately 266,000 metric tons to make up the shortfall during November, which will cover sales and the replenishment of the depleted stocks, at the monthly Product Review Meeting for November 2024, which was held on October 22 and attended by the CEOs and MDs of the oil industry as well as representatives from the Ministry of Petroleum.
November is a crucial month because of the agri-season and the 40-day outage of PARCO, the nation’s main supply source that accounts for about 50% of refinery production. As part of its responsibility,Oil and Gas Regulatory Authority must work to keep fuel supplies consistent and avoid any shortages.
It is important to note that the planning process for HSD imports is the same as that for other petroleum products, and the oil marketing organizations are given volumes based on their sales forecasts, local availability, and inventory levels.
When there is a substantial deviation from the plan that calls for rectification, corrective action is conducted as part of this continuous planning process. Every ten to fifteen days, OGRA regularly assesses the state of the national oil supply chain in order to make any necessary adjustments based on market conditions.
