The federal government on Thursday directed all provincial administrations to conduct physical inspections of retail petrol stations through deputy commissioners to prevent hoarding and profiteering of petroleum products.
The move comes amid rising regional tensions affecting global oil supply routes. The Oil and Gas Regulatory Authority assured that Pakistan currently holds sufficient petroleum stocks to meet national demand and urged the public to avoid panic buying.
Authorities are closely monitoring the supply chain to ensure uninterrupted availability of fuel across the country. Ogra stated that existing stock levels remain within prescribed requirements and warned that strict action would be taken against illegal storage of petroleum products at unauthorised locations. Any premises found involved in unlawful hoarding would be sealed.
Provincial chief secretaries have been instructed to ensure deputy commissioners carry out inspections within their jurisdictions. Ogra teams are also conducting field inspections at oil depots and retail outlets to prevent malpractice.
Petroleum Secretary Appointed
The government appointed Hamed Yaqoob Sheikh, a Grade-22 officer of the Pakistan Administrative Service, as Secretary Petroleum Division. The position had remained vacant for the past two months. Sheikh previously served as finance and planning secretary and was most recently serving as secretary national food security.
Weekly Price Revision Under Consideration
The government is reviewing a proposal to shift the petroleum pricing mechanism from a fortnightly to a weekly revision system. If implemented from March 8, petrol and diesel prices could increase by Rs25 to Rs50 per litre, according to latest estimates.
Authorities are also considering providing full financial cover to oil marketing companies to ensure sufficient imports. Additional measures under review include fuel conservation steps such as transitioning public and private offices to work-from-home arrangements to reduce oil consumption.
The developments come as the United States and Israel’s ongoing conflict with Iran enters its sixth day, disrupting tanker movement through the Strait of Hormuz. Finance Minister Muhammad Aurangzeb stated that there is currently no fuel shortage in the country but warned that the situation could worsen if the conflict prolongs.
Pakistan has formally requested Saudi Arabia to facilitate an alternative oil supply route through the Red Sea to maintain supply continuity.
OMCs Raise Concerns Over Refinery Supplies
Separately, the Oil Marketing Association of Pakistan raised concerns with Ogra over reduced supply commitments by local refineries.
In a letter to the regulator, the association stated that refinery supply volumes had been mutually agreed and finalised during the last product review meeting. Based on those commitments, most oil marketing companies did not arrange import cargoes.
However, during the current month, refineries reportedly introduced an allocation system, offering limited quantities based on certain averages instead of agreed volumes. The association termed this a deviation from commitments and warned that the reduced supplies were depleting the mandatory 21-day stock cover maintained by oil marketing companies.
The association maintained that while refineries reported adequate stock positions, supplies to oil marketing companies had been significantly reduced. It warned that continued restrictions could push stock levels to critical levels and result in shortages at retail outlets.
The association urged Ogra to intervene immediately, ensure adherence to agreed supply volumes, and take regulatory action, including penalties, against any refinery violating commitments.
