Islamabad, Aug 31: The Oil and Gas Regulatory Authority (OGRA) on Friday ordered OMCs, including PSO and GO, to maintain High-Speed Diesel (HSD) stocks in accordance with established practice, taking serious note of media reports regarding a slowdown in diesel upliftment due to imports allowed to OMCs.
According to a press statement, “The Oil and Gas Regulatory Authority (OGRA) has taken note of reports circulating in various newspapers regarding a slowdown in diesel upliftment due to imports allowed to Oil Marketing Companies (OMCs)”.
Pakistan’s dependence on imported petroleum products necessitates careful preparation, which is often done two months in advance, according to the regulator. There will inevitably be some variance in supply and demand due to the complexity of this process.
A number of variables, including shifting demand patterns, shifting pricing trends, and modifications in OMCs’ upliftment behavior, all affect the need for diesel.
Furthermore, difficulties like the country’s porous borders affect the nation’s general planning and fuel availability. It said that it is significant to remember that historically, the months of October and November correspond with the agricultural season, which raises demand for HSD.
To maintain an adequate supply of HSD in the market, it is necessary to import additional volumes well in advance of this seasonal rise in demand.
October and November will see Pak-Arab Refinery Company Limited (PARCO) go through planned maintenance for a minimum of forty-five days. 50% of the nation’s domestic production is made up of diesel (200,000 MT) and 47% is made up of gasoline (100,000 MT) by PARCO. It stated that in order to rectify the gap, two significant importing OMCs, PSO and GO, were directed to import the HSD volumes required to maintain supply in accordance with standard procedure.
Strategically obtained healthy stocks will begin to run low at the beginning of the agricultural season, which is in mid-September, assisting in meeting demand in the event that PARCO output is not available. OGRA is still dedicated to making sure Pakistan has a steady supply of petroleum products.
In order to handle any potential issues appropriately, the authority is continuously coordinating with all parties involved, including refineries, oil and gas divisions, and monitoring the situation attentively.
