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Fuel supply concerns grow as dealers warn of possible petrol shortage

Oil dealers warn reduced fuel allocations and import delays could disrupt petrol supplies across Pakistan, while authorities insist current stocks remain sufficient for demand.

4 months ago
in Business
Reading Time: 3 mins read
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KARACHI (Web Desk) – Concerns over a possible petrol shortage are growing across Pakistan after petroleum dealers claimed that oil marketing companies (OMCs) have started restricting fuel supplies to retail outlets, raising fears of disruptions if immediate corrective measures are not taken.

The warning comes as global crude oil prices continue to rise, increasing pressure on Pakistan’s petroleum import bill and prompting industry stakeholders to call for urgent government intervention to stabilize the country’s fuel supply chain.

Representatives of petroleum dealers said several filling stations have begun receiving reduced fuel allocations from oil marketing companies, creating uncertainty about future supplies in major cities, including Karachi, Lahore, Islamabad and other urban centers.

Sindh Petroleum Dealers Association President Amir Khan said OMCs have introduced an allocation system that limits the quantity of petrol supplied to individual filling stations. According to him, the reduced deliveries could gradually create shortages if the situation continues.

He said many petrol pumps are already operating under restricted supply schedules, making it difficult to maintain adequate fuel reserves during periods of increased consumer demand.

Pakistan Petroleum Dealers Association Vice Chairman Tariq Hassan also expressed concern over the situation, warning that continued restrictions could eventually affect fuel availability across different regions of the country.

He urged the government to review the supply mechanism and ensure uninterrupted distribution of petroleum products to prevent panic buying and unnecessary pressure on the retail market.

Oil marketing companies, however, rejected claims of an immediate shortage and maintained that supplies are being distributed according to each petrol pump’s average monthly sales.

Industry sources said dealers frequently seek additional stock whenever international oil prices rise because they anticipate higher domestic fuel prices and increased consumer demand. They added that companies are currently supplying fuel under an allocation formula designed to ensure fair distribution.

The latest concerns emerged after the Oil Companies Advisory Council (OCAC) formally approached the federal government, warning that delays in imports and customs clearance could create supply challenges if unresolved.

In its communication with the Ministry of Petroleum, the council highlighted that Pakistan currently holds approximately 370,000 tonnes of petrol, which is estimated to meet national demand for around 15 days under normal consumption patterns.

The council warned that delays in customs clearance are slowing the movement of imported petroleum products into the domestic market. According to industry officials, these bottlenecks are particularly affecting supplies destined for northern and upcountry regions.

OCAC also pointed to delays involving an import cargo for Pakistan State Oil (PSO), saying the postponed shipment has added pressure to the country’s petroleum supply network.

Industry representatives stressed that timely imports remain essential because Pakistan relies heavily on imported petroleum products to meet domestic demand.

The advisory council further requested the immediate release of approximately Rs66.7 billion in outstanding Price Differential Claims (PDC) owed to oil marketing companies.

According to the council, delayed payments have created financial difficulties for companies already facing higher import costs due to increasing international oil prices and exchange rate pressures.

The industry also called for improvements in customs processing through the WeBOC clearance system, arguing that administrative delays are slowing fuel deliveries despite sufficient import arrangements.

Energy sector experts believe that resolving financial and logistical issues quickly would help maintain uninterrupted fuel supplies and reduce concerns among consumers and businesses.

Market analysts noted that uncertainty surrounding petroleum supplies often triggers panic buying, placing additional strain on fuel stations even when overall national stocks remain adequate.

They advised consumers to avoid unnecessary purchases, saying panic-driven demand can create localized shortages despite sufficient inventories within the broader supply system.

Government officials have not announced any emergency measures, but industry stakeholders expect authorities to engage with oil companies and dealers to address concerns before supply disruptions become widespread.

For now, petroleum dealers continue to urge swift action on import approvals, customs clearance and pending financial payments, warning that timely intervention will be essential to maintaining stable fuel availability and preventing shortages across Pakistan in the coming weeks.

Tags: economyenergyfuel supplykarachiOCACOil Marketing CompaniesPakistanPetrol ShortagepetroleumPSO
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