Pakistan is already planning a fuel shortage crisis that could leave the petrol pumps dry after Monday.
The All Pakistan Petrol Pump Owners Association (APPPOA) sent an emergency letter to Prime Minister Shehbaz Sharif. They alert that oil marketing companies (OMCs) have made drastic cuts in fuel supplies across the country.
According to the letter, OMCs have come up with a quota system in the face of the current crisis in the Middle East. The association says that they are not supplying the product or have reduced it so much that we cannot satisfy the needs of the people, and the fuel stations will run out.
Petrol pumps are randomly cancelling orders, and the fuel tankers are waiting hours at depots to empty out. The APPPOA requires the government to take action and consult stakeholders before restrictions are made.
Owners of Petrol Pumps Warn of Shutting Down
Pakistan Petroleum Dealers Association (PPDA) has also threatened that fuel stations would close down in a few days unless the supply is reinstated.
The Central Secretary General of the PPD Central, speaking at Lahore Press Club, disclosed some astonishing data:
- Diesel supplies have also dropped to only 20% of normal.
- The petrol supplies have been reduced by 50 %.
- Prices are artificially rising, with diesel and petrol selling at Rs 17 and Rs 35, respectively, in certain areas.
Jehanzaib Malik, Lahore, President of the PPDA, stressed that dealers do not intend to frustrate the masses. But he cautioned: failure by the government to restore supply will see petrol pumps begin to run dry as early as Monday.
Government Position: 28 Days of Stock
The Oil and Gas Regulatory Authority (OGRA) has attempted to assuage the nerves and claim that Pakistan has sufficient fuel reserves to cover 28 days of consumption.
Officials explain that there was a pre-emptive importation of excess fuel before the crisis. Reserves have increased to 28 days of demand for petrol and diesel, and a backup of crude oil and LPG.
The government, however, admits that two oil cargo vessels have been stuck following the Revolutionary Guards of Iran’s closure of the Strait of Hormuz. It controls 20% of the world’s oil traffic and is vital to Pakistan’s physical energy imports.
Iranian forces threaten that no ship is supposed to cross the Strait of Hormuz, warning that any ships that may cross the Strait will be attacked.
Contingency Plan of Government
To avoid the Strait of Hormuz closure, Pakistan is collaborating with Saudi Arabia and the UAE to import oil through the Red Sea:
- Oil supplies will be offered by UAE-based ADNOC and Saudi Aramco via alternative ways.
- Ships have already been delivered to one refinery via the Red Sea.
- Several oil vessels have already reached Pakistan, and others are on the way.
The government has also moved to a weekly fuel price adjustment process in order to react faster to the changes in the global market to avoid hoarding.
Wider contingency plans consist of national energy conservation plans, and a short-term shutdown of higher institutions would be considered to cut down on fuel consumption.
What does it mean to Consumers?
Shutting down of petrol pumps on Monday:
- Daily commuters: Motorcycles, rickshaws, and cars, which are incapable of refuelling.
- Transport sector: Trucks and buses have become stuck, and supply chains have been disrupted.
- Agriculture: Affected farm machinery and irrigation pumps.
- Food prices: Necessary products that will get costly.
Although pumping out may be open, low stocks imply long queues, scarce buying power, and even black markets.
Conclusion
Pakistan is on the brink of a fuel crisis, and petrol pumps may run dry by Monday. The government wants strategic reserves to supply 28 days of demand, but ground reports by petrol pump owners reveal a different scenario of cancelled orders, no tankers, and artificial shortages.
The shutdown of the Strait of Hormuz has made Pakistan vulnerable to energy shocks in the world. Hopefully, with alternative supply routes via the Red Sea being opened, things will not be as bad. To date, millions of Pakistani consumers are anxiously waiting to know whether they can fuel their vehicles tomorrow (Monday).
The next 48 hours will be critical.
Frequently Asked Questions
Owners of petrol pumps have threatened that, without supplies, the pumps will be closed by Monday. The supply of diesel has dropped 80 %, and the supply of petrol dropped 50 %.
According to OGRA, Pakistan has sufficient stocks of fuel that could last 28 days of use, as well as stocks of crude oil and LPG.
This deficit is due to the Iranian Revolutionary Guard blocking the Strait of Hormuz due to the US-Israel-Iran conflict, leaving two crude oil cargoes stagnant.
Pakistan is also organizing with Saudi Arabia and the UAE to bring in oil via the Red Sea, which is outside the Strait of Hormuz. A number of ships have taken their arrival.
Officials recommend people not to panic buy because it is likely to create more problems. They have strategic reserves and are activating alternative supply routes.
