ISLAMABAD: The petrol shortage may continue for another week as no remedy is being done by any government department.
Petroleum Minister Shahid Khaqan Abbasi, during a press briefing, said that the petrol crisis was limited to Northern Punjab and Khyber Pakhtunkhwa. He said that the ministry had made arrangements with the power ministry to ensure the supply of a total of 12,500 tons of high-sulphur furnace oil, low-sulphur fuel and diesel, per day, until Jan 31 to curb the fuel shortage. However, he did not disclose the position of furnace oil stocks, despite repeated questions. Power projects consume about 29,000 tons of fuel per day to utilise the full capacity of thermal power stations.
Ogra chairman Saeed Ahmed Khan said the regulator was not responsible for the supply and demand situation of oil products, which he said fell under the jurisdiction of the federal government.
Ahmed Khan said that the petrol demand had increased by about 23 per cent over the last few days, adding that that oil marketing companies were bound under the law to keep at least 20 days stock in storage.
The petroleum minister had listed a number of reasons for the petrol shortage. He said that petrol sales saw an unprecedented increase in January this year as demand surged to 15,000 tons per day, compared to 12,000 tons in December 2014.
He said that consumers had avoided filling their vehicles in the last few days of the December, in anticipation of a substantial price cut. This resulted in 40,000 tons in sales on the first day of January, which was unprecedented. The non-availability of CNG in Punjab and the sudden closure of the Pak-Arab Refinery Limited for five days contributed to the shortage as reserve stocks evaporated. He also confirmed that a petrol shipment had been delayed for a week.
The minister claimed there was no problem with the supply planning and that against a requirement of 380,000 tons, about 140,000 tons were to come from refineries and the remaining 244,000 tons would be imported. He said the government had planned to import 274,000 tons but the demand suddenly exceeded forecasts by about 75,000 tons.
Meanwhile, Finance Secretary Dr Waqar Masood Khan told the Senate Standing Committee on Finance and Petroleum that Pakistan State Oil (PSO) needed Rs27 billion to line up oil imports and the Ministry of Finance had already disbursed Rs17 billion while arrangements were being made to bridge the deficit. He said that a shipment of about 50,000 tons of petrol was being offloaded at Karachi Port, which would take five to six days to reach upcountry areas.
