[:en]BY COMMERCE REPORTER
LAHORE: Oil Marketing Association of Pakistan (OMAP) has demanded Oil and Gas Regulatory Authority, (OGRA) intervention to ensure continuous supply of petroleum products in the country.
In a letter written to Chairman OGRA Masroor Khan, Chairman OMAP Tariq Wazir Ali expressed concerns regarding the impending rise in motor fuel prices on the 1st of July and its potential ramifications on the supply chain of the same.
He went on to say, “At present, there are significant apprehensions surrounding the anticipated increase in motor fuel prices, which has led oil refineries to halt the delivery of the same to Oil Marketing Companies (OMCs). This withholding of supply is causing a rapid depletion of stocks at OMCs, raising the alarming possibility of a severe shortage that could result in widespread dry pumps across the country.”
Tariq Wazir Ali further asserted that as the regulator, OGRA mandates OMCs to maintain a 20-day stock of motor fuels. However, in situations like these, where refineries unilaterally cease supplies, OMCs find it impossible to adhere to this requirement, he said adding thay it is concerning that OGRA, despite its regulatory oversight, does not impose disciplinary measures on refineries that fail to supply the required products to OMCs. This lack of enforcement undermines the ability of OMCs to maintain the necessary stock levels, thereby disrupting the petroleum supply chain.
He added, “Given the gravity of the situation, we urgently request OGRA’s immediate intervention. It is worth to mention that as OMCs were denied approval of importing diesel directly, hence we implore OGRA to instruct all refineries to resume the delivery of motor fuels to OMCs in accordance with their demands.” Chairman OMAP said that this intervention is crucial to ensure that the supply chain remains intact and to prevent any chaotic conditions that may arise from fuel shortages.
“We believe that proactive measures from OGRA will not only uphold the regulatory standards but also safeguard the interests of consumers and the overall stability of the petroleum market in Pakistan. Your prompt action in this matter will be greatly appreciated and will reinforce the confidence of all stakeholders in the regulatory framework”, he added.
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