OGRA refutes rumors that there is a scarcity of gasoline in the country, citing “sufficient stock.”
It is said that ships carrying 100,000 metric tonnes of gasoline are currently berthed.
ISLAMABAD:
On Tuesday, the Oil and Gas Regulatory Authority (OGRA) vehemently denied rumors of a scarcity of gasoline and diesel throughout the nation, asserting that there is plenty supply.
Imran Ghaznavi, the spokesman for OGRA, claims that the nation has sufficient reserves to cover the demand for gasoline for 17 days and diesel for 32 days.
According to Ghaznavi, ships carrying 100,000 metric tonnes of gasoline are docked at the port, and local refineries are actively contributing to supplying the demand for petroleum goods.
Prior to this, the Petroleum Division issued a warning to the central bank that the lack of letters of credit (LCs) for imports could cause the supply of petroleum products to run out.
Due to constraints imposed by the State Bank of Pakistan and the lack of US dollars, the oil industry in Pakistan, like other sectors, is having difficulty opening Letters of Credit (SBP).
A cargo of oil belonging to Pakistan State Oil (PSO) has already been canceled, but the letter of credit for another cargo that was supposed to load on January 23 has not yet been approved.
The Petroleum Division pointed out the challenges faced by oil refineries and marketing firms in establishing the LCs in a letter to the SBP governor.
Sources claim that Pak Arab Refinery Limited (PARCO) intended to import two cargoes of 535,000 barrels each of crude oil, but banks are refusing to open and confirm the Letters of Credit.
On January 30, a crude oil cargo with a capacity of 532,000 barrels is expected to be loaded for Pakistan Refinery Limited (PRL). Its LC, however, has not yet been verified and is currently being discussed with a state-owned bank.
Additionally, two PSO gasoline cargoes that are in the pipeline are awaiting the acceptance of LCs by regional banks.
Industry participants claim that the opening and confirmation of LCs are also necessary for 18 cargoes of gasoline ordered by other oil marketing companies (OMCs), including GO, Be Energy, Attock Petroleum, Hascol Petroleum, and others.
Since the second week of January, a number of meetings have been conducted to address the issue, stressing the banks’ refusal to create LCs in favor of OMCs and refineries for the import of crude oil and petroleum products.
Officials from the central bank noted that Pakistan was experiencing a significant liquidity shortage, which affected the SBP and commercial banks and was the cause of the delays in LCs.
To reduce customer demand, the Petroleum Division emphasized the importance of practising energy-saving measures.
The DG oil stated that “the country has limited oil stocks and such a circumstance can result in the drying up of inventory.” In order to discuss the matter with the SBP governor and the finance minister at the highest level, it was decided that the SBP might formally deliver its response to the shared list of immediately required LCs.
The DG oil stated, “State Bank is urged to provide its reaction to the status of LCs necessary to be opened.” He asked the SBP governor to make the proper judgements and warned that the subject might be brought up with the finance minister and prime minister’s office if they were unable to help.
