The oil industry has lodged a strong protest with the Oil and Gas Regulatory Authority (OGRA) regarding a surge in oil stocks, attributed to increased imports and the influx of smuggled petroleum products.

The Oil Companies Advisory Council (OCAC) initially brought these concerns to OGRA’s attention, prompting the scheduling of a meeting for Tuesday, which was unexpectedly postponed. Industry leaders have cautioned that the current situation could potentially lead to the collapse of local oil refineries.

Pakistan’s current reserves include 461,000 metric tons of fuel oil, sufficient for 301 days, and 445,146 metric tons of petrol, enough for 21 days. Despite these reserves, domestic demand remains low, with 90 percent of furnace oil being exported. Additionally, there are 771,000 metric tons of high-speed diesel (HSD) available, which is adequate to meet demand through September.

The OCAC has criticized OGRA for continuing to approve HSD imports by a particular oil marketing company, despite the availability of ample stocks from local refineries. The council stated that these imports violate the Pakistan Oil Rules 2016, which mandate prioritizing local production.

Furthermore, the association has raised concerns about an alleged unfair business environment and urged OGRA to enforce fair practices to ensure the stability of the oil sector.