Islamabad, Aug 28: The oil sector has been quite vocal in its protests to the Oil and Gas Regulatory Authority (OGRA) regarding the increase in oil stockpiles that have been caused by petroleum products being smuggled in and increased imports.
Following the discussion of these issues with OGRA, the Oil Companies Advisory Council (OCAC) set a meeting for Tuesday. But the meeting was called off without warning. Industry experts have cautioned that local oil refineries may fail as a result of the current circumstances.
Pakistan presently has 445,146 metric tons of gasoline and 461,000 metric tons of fuel oil, or enough for 301 and 21 days, respectively. Ninety percent of furnace oil is exported, indicating a notable lack of domestic demand despite large reserves. High-speed diesel (HSD) in the amount of 771,000 metric tons is sufficient to supply demand until September.
OGRA’s continued clearance of HSD imports by a certain oil marketing company has drawn criticism from OCAC, even though nearby refineries have enough supply on hand. The council emphasized that these imports are against the 2016 Pakistan Oil Rules, which mandate giving local production priority.
In order to maintain the stability of the oil industry, the group also expressed worries about the purportedly unfair business environment and urged OGRA to enforce fair practices.
