Owing to inadequate imports and limited local availability, the oil industry has warned the government about an expected petrol and high-speed diesel (HSD) shortage in the coming days.
During a product review meeting for the month of November held on 13 and 14 October, a deficit of 210,000 MT of High-Speed Diesel (HSD) and 147,000 MT of Motor Spirit (MS) was identified, Oil Companies Advisory Council (OCAC) informed the government in a letter sent to the Oil and Gas Regulatory Authority on November 3.
Due to the limited supply of molecules on the global market and the extremely high premiums, it was noted during the conference that HSD imports in November would be difficult. As a result, only PSO and Flow Petroleum have so far reserved laycans totaling 220,000 MT and 10,000 MT, respectively.
The fact that MS import laycans have not yet been booked and do not correlate to the estimated sales volume and stock cover, on the other hand, is concerning, according to OCAC’s letter.
The body said that import plans should have been finalized by importers “but as of today, there is a deficit in the import plan.
This critical issue was also highlighted in the meeting held on November 1 with the industry representatives; however, no firm commitments have been received from the importing OMCs in writing, it said.
“Some OMCs who were supposed to bring imports for use in October received their shipments in the last week of October hence product was not available for use during the month it was intended for.
Similarly, some OMCs who were allowed imports in the previous month for use next month have already consumed the parcels in advance,” it said.
It requested that the Oil and Gas Regulatory Authority check into the problem and give the importing OMCs the required instructions, urging them to stick strictly to their importation plans and provide written confirmation in order to prevent any unfavorable circumstance.
