Oil Refineries and OMCs Ordered to Stock Up Before Eid

The Federal Government has asked refineries and oil marketing companies to boost their supplies of major transport fuels ahead of Eid ul Fitr.

The petroleum division issued an advisory and directed all the oil marketing companies (OMCs) to increase their logistic movement from Karachi to upcountry locations so that sufficient stocks are maintained at OMC depots.

It also directed OMCs and refineries to operate their depots and installations during Eid holidays, except the first and second day of Eid, while the retail outlets would remain operational without any holiday.

The petroleum division told them that depots and installations will remain operational on Sunday (May 24) in case Eid ul Fitr falls on Monday (May 25) in order to ensure uninterrupted supplies at all retail outlets.

The Oil & Gas Regulatory Authority (Ogra) and Oil Companies Advisory Council (OCAC) were asked to ensure that all the retail outlets remain operational throughout the country without any break.

The advisory followed recent shortages of HSD supplies in many parts of the country, as farmers and associated supply chain struggled to meet their wheat harvesting and transport requirements in the middle of uncertain weather conditions.

The OMCs blamed each other and the petroleum division’s directorate general of oil for failing to meet their obligations and unilateral changes made by the officials of the directorate general of oil to the decisions of the industry and the government.

Earlier, the government had imposed an abrupt ban on imports as demand had fallen sharply due to the COVID-19 lockdown and there was fear of refinery shutdowns due to the glut. The cancellation of imports after initial approval wreaked havoc with the supply chain planning, profitability, and international reputation of OMCs.

In order to cater to the rising demand for petroleum products in the country, Pakistan had allowed the resumption of oil imports due to the start of harvesting season during the start of April.