OGRA lets oil companies regulate supply to curb hoarding amid Gulf tensions
Business
“This measure is a standard supply management practice aimed at maintaining stability in the distribution system.”
KARACHI (Web Desk) - Oil and Gas Regulatory Authority (OGRA) announced on Wednesday it was allowing oil marketing companies to regulate supply to retail outlets as a temporary move to prevent hoarding, as tensions in the Middle East surge following the ongoing military conflict involving Iran.
The decision follows fears of fuel shortage in Pakistan after the Strait of Hormuz, a strategic waterway between Iran and Oman, was shut after escalating hostilities between Tehran and the US and Israel in the Gulf. The conflict has disrupted tanker traffic through one of the world’s most important oil chokepoints.
Pakistan relies heavily on Middle Eastern crude oil, with the majority of its energy imports typically transiting the strait, making any disruption a major risk to domestic fuel supplies.
“To ensure the uninterrupted availability of petroleum products and to discourage hoarding during periods of extreme price volatility, Oil Marketing Companies (OMCs) may temporarily regulate supplies to retail outlets based on their historical sales patterns,” OGRA spokesperson Imran Ghaznavi said in a press release.
“This measure is a standard supply management practice aimed at maintaining stability in the distribution system.”
The OGRA spokesperson clarified that Pakistan currently holds “adequate stocks of petrol and diesel, well within the required limits.”
He stressed that there is no shortage of petroleum products in the country.
“Citizens are advised not to pay attention to rumors and to rely only on information issued through official channels,” Ghaznavi said.
Pakistan has moved quickly to ensure its stock of petroleum products does not take a massive hit. Pakistan’s Petroleum Minister Ali Pervaiz Malik met Saudi Ambassador Nawaf bin Said Al-Malki on Wednesday.
Pakistan asked Saudi Arabia for help in securing crude oil supplies through the Red Sea port of Yanbu, the petroleum ministry said.
The Saudi ambassador reaffirmed Riyadh’s support, saying the Kingdom was aware of the evolving situation and would stand with Pakistan to meet any emergency requirements, the statement added.
