The government has launched an investigation into the alleged hoarding of petroleum products by oil marketing companies (OMCs) following panic buying triggered by the ongoing regional conflict involving Iran.

Prime Minister Shehbaz Sharif has directed the Federal Investigation Agency (FIA) to probe certain OMCs as well as some officials of the Oil and Gas Regulatory Authority (OGRA) over suspected stockpiling that may have constrained supply and contributed to price pressures.

Preliminary findings suggest that at least one OMC may have deliberately withheld inventory, potentially creating artificial shortages to justify higher prices. Officials said the FIA’s Karachi office has recorded testimony from a senior official of the Directorate General of Oil, who supported claims that “unscrupulous players” may have manipulated the market.

The investigation follows nationwide panic buying after the outbreak of war involving Iran, which prompted the government on March 7 to increase petrol and high-speed diesel prices in an effort to ensure uninterrupted fuel availability across the country.

Separately, OGRA highlighted concerns about possible hoarding in a letter sent to the government on April 16, seeking approval for a Rs128 billion mechanism to settle price differential claims (PDC) of OMCs. The regulator noted that companies found guilty of hoarding would not be eligible for these payments, according to the letter seen by this correspondent.

The FIA is making rapid progress and is expected to submit its findings to the prime minister soon, which could influence decisions on compensation claims and possible enforcement action against companies found responsible for disrupting fuel supplies.