Minister warns of action against OMCs creating petrol shortage

ISLAMABAD: Minister for Petroleum Omar Ayub Khan said the government has decided to take stern action against oil marketing companies (OMCs) and dealers creating artificial shortage of petroleum products.

In a tweet, the minister said that it has been decided to take action against such elements in collaboration with relevant institutions and provincial governments.

The minister said the list of hoarders and profiteers will be prepared and made public to expose them besides cancelling their licenses. He advised the public not to indulge in panic buying as there was no shortage of petroleum products in the country.

کچھ آئل مارکٹنگ کمپنیوں وڈیلرز کی ناجائزمنافع خوری کیلئےمصنوعی پٹرول/ڈیزل قلت کے خلاف اوگراSECPاورصوبائی حکومتوں سے ملکرسخت اقدامات کا فیصلہ،انکی لسٹیں بنا کرعوام کے سامنے بے نقاب کیا جائے گااورلائسنس بھی کنسل ہونگے،عوام عجلت میں خریداری نہ کریں ملک میں پٹرولیم کی کوئی کمی نہیں pic.twitter.com/0XyjbsBuLN

— Omar Ayub Khan (@OmarAyubKhan) June 5, 2020

Yesterday, the Oil and Gas Regulatory Authority (OGRA) has issued show-cause notices six mega oil marketing companies (OMCs) involved in the ongoing shortage of petroleum products across the country

OGRA Spokesman Imran Ghaznavi said that the regulator had asked the petroleum division to call an urgent product review meeting (PRM) to review the integrated system like stock, import and local production.

Out of a total of 33 OMCs, six of them namely Attock Petroleum Limited (APL), Shell Pakistan Limited, Total Parco Pakistan Ltd, Hascol Petroleum Ltd, Gas and Oil Pakistan and Puma Energy are involved in shortage of petrol across the country and have been issued show-cause notices.

OGRA had sought replies from these six OMCs and has warned that the authority might revoke their licenses and impose fines up to Rs10 million over failing to comply with the directive.

READ MORE: Petroleum Division raises concerns over artificial petrol shortage

Earlier, the Petroleum Division has expressed concern over the artificial shortage of petroleum products being created in the country by oil manufacturing companies and petrol dealers.

The Petroleum Division issued a statement stating that there is sufficient quantity of petrol stocks in the country. It said that additional production by refineries as well as planned imports are on schedule to meet monthly needs.

The statement said that it is unfortunate that some oil manufacturing companies and their dealers have resorted to such methods for profit maximization that are having an adverse impact on the lives of the esteemed consumers.

The Petroleum Division has asked the Oil and Gas Regulatory Authority (OGRA) to take action against the OMCs who are not maintaining the required stocks or whose pumps are dry. It also recommended the termination of dealer licenses if they do not order sufficient product from their respective oil companies.