Islamabad: The Oil and Gas Regulatory Authority (Ogra) in Pakistan has discovered 19 illegal storage sites and warehouses in Punjab that have been used to hoard and dump petroleum products to manipulate inventory levels by black marketers and hoarders. In a letter to the Punjab Chief Secretary, the regulator stated that these illegal storage facilities are contributing to the recent oil shortage. The authority has advised the Chief Secretary to take immediate action against the culprits involved in this illegal activity and has shared a list of the identified illegal petrol/diesel storages.
Ogra has also deployed enforcement teams to inspect the storages and ensure a steady supply of petroleum products in the region. The locations of these illegal storages have been identified in Gujrat, Kharian, Machike, Sheikhupura, 18-Hazari, Shorkot, Darbar Sultan Bahu, Road Sultan 18-Hazari Jhang, Mehmood Kot, near the oil depot in Habibabad Pattoki, near the oil depot in Vehari, and at Jassar Bypass in Narowal.
The government has claimed that the oil crisis is artificial and that hoarders are responsible for it. According to the Petroleum Division, the country has sufficient stocks of 363,085 metric tons of petrol, which is enough to meet the country’s needs for 20 days. There is also 515,687 metric tons of available oil, sufficient to meet 29-day requirements.
In the past, the country has experienced oil shortages, but the Petroleum Division has been unable to formulate a strategy to address the crisis. The oil regulator has imposed heavy fines on oil marketing companies, but dealers continue to take advantage of consumers by creating an artificial shortage in the country.
Minister of State for Petroleum, Dr. Musadik Malik, has stated that the government does not plan to hike fuel prices and has warned oil companies against stockpiling petrol. The minister has indicated that the country has enough fuel to last at least 20 days, and any consumer shortages are due to stockpiling by oil marketing companies. The Minister has threatened to revoke the licenses of companies that do not comply.
However, a member of the Oil Companies Advisory Council has told Reuters that only a few of the licensed companies are selling fuel, while others are not due to financial issues or hoarding. The petroleum ministry is processing letters of credit to import fuel, but the country’s low foreign exchange reserves and artificial restrictions remain a hindrance.
Consumers in Punjab have reported that some petrol stations are closed, and others are limiting the amount of fuel that can be purchased. Abdul Sami Khan, the chairman of the Pakistan Petroleum Dealers Association, has stated that the shortage is not from the dealers and that they have not received enough supply from the oil marketing companies.
The hoarding of LPG has also been reported in the country, and the LPG Distributors Association Chairman, Irfan Khokhar, has challenged the state minister for petroleum and alleged that a state-owned gas utility is involved in black marketing the product.
