The major shortage was witnessed in the supply of motor gasoline (petrol). In many areas as stocks were quickly exhausted on the first two days of the month after price revision, as the concerned authorities botched to ensure the stocks at depots. Shortage of petrol supply across the country is not an act of surprise. It has happened every time the petroleum prices have hath a fall.
— Madiha (@PakistaniDiya) June 1, 2020
The oil companies were asked by OGRA (Oil & Gas Regulatory Authority) to adopt rationing practices to circumvent a total dry-out. The reason for the shortage was that oil companies stopped imports and scaled-down elating of local production. Due to the fear of refineries, for avoiding inventory losses. The supply disruptions had started emerging during the Eid holidays and OGRA and oil authorities were well-aware. All oil companies and refineries are bound to ensure a minimum of 21 days of consumption. However, none of the 80 to 90 OMCs (Oil Marketing Companies) met this mandatory requirement.
As a last effort, the petroleum division tried through ECC (Economic Coordination Committee) to keep the prices of petroleum products unchanged for two weeks. To allow the oil industry to recoup some of its losses by selling at existing rates. The petroleum division had also proposed that ex-refinery price should be based on the average of fortnightly or monthly. Platts Price plus premium, including PSO’s incidentals and ocean losses and taxes in keeping with the current practice.
The Prices are surely a relief for the People of Pakistan but the supply isn’t. Making sure that the supply of Petrol across the state is available would be a better relief situation for people. Keep yourself updated with the latest news regarding the Economy of Pakistan.