Pakistan State Oil (PSO) has revealed the reasons behind an artificial fuel shortage in the country.
In its report, the state-owned petroleum company highlighted that due to the coronavirus lockdown, the demand for fuel in the country had reduced significantly. At the time the government had directed OMCs to stop imports and source the fuel from local refineries.
The report added that most of the oil marketing companies, operating in Pakistan, did not maintain the recommended reserves of petroleum products in April.
Despite the fact that all oil companies are license-bound to ensure a minimum of 21 days of consumption cover of all petroleum products, most of them had stock available for only two to three days, PSO highlighted.
So, when the demand for petroleum products increased back in May, all the burden shifted to PSO reserves.
During the period, the oil companies were reluctant to buy petroleum products.
PSO identified that the oil companies had violated the regulations and urged the government to take stern action against them.
On the other hand, the federal government has also constituted an investigation committee to probe the artificial petroleum crisis.
The investigators will look into the possibilities of hoarding and black marketing being the reason behind the shortage.
The committee summoned CEOs of three oil companies, Hascol Petroleum Limited, Shell, and GO Oil Company, on Thursday.