Diesel Stocks Fall Below 20-Day Requirement at Most Pakistani Oil Marketing Companies
Diesel inventories at several oil marketing companies (OMCs) in Pakistan have fallen below the required 20-day stock level, as companies remain cautious about purchasing fuel amid uncertainty over the next petroleum price adjustment.
According to industry data, 12 out of 20 OMCs currently have less than the recommended 20-day supply of high-speed diesel (HSD). Stock levels at some companies have dropped to only a few days.
Several Companies Have Critically Low Stocks
The available stock cover varies significantly among oil marketing companies.
My Petroleum has around one day of diesel stock, while Vital has two days and Echo has three days. Taj has six days, Euro seven days, while Hascol and Horizon each have around eight days of supply.
GO has nine days of stock, followed by Flow with 10 days and Allied with 11 days. ZMOPL and Hi-Tech currently have around 16 days of supply.
Meanwhile, eight companies remain above the 20-day benchmark.
Wafi has the highest reported stock cover at 31 days, followed by BE with 28 days and PSO with 26 days. Parco, Gunvor and Jinn each have 24 days, while Puma has 23 days, Attock 22 days and Cnergyico, formerly known as Byco, 21 days.
Price Uncertainty Behind Inventory Decline
Industry representatives said the falling inventories are primarily linked to uncertainty over petroleum prices, rather than an immediate shortage of diesel in the country.
Companies are reportedly reluctant to build expensive inventories because a reduction in HSD prices during the next pricing cycle could result in financial losses on fuel purchased at higher rates.
The Oil Companies Advisory Council (OCAC) has raised the issue with the petroleum minister and called for a more predictable pricing mechanism for oil marketing companies and refineries.
Liquidity Problems Add to Pressure
Industry officials said financial constraints are also affecting the ability of some companies, particularly smaller OMCs, to maintain higher inventory levels.
Delayed price differential claims with the Oil and Gas Regulatory Authority (OGRA) have reportedly tied up working capital, while financing expenses have added to the pressure.
Companies also face the risk of holding costly fuel stocks if the government subsequently reduces petroleum prices.
Supply Chain Risks Could Increase
Industry representatives have warned that continued low inventories, unresolved financial claims and frequent changes in the petroleum pricing mechanism could increase pressure on the country’s fuel supply chain.
They said expectations of lower diesel prices are discouraging some companies from making fresh purchases, which is contributing to declining stock levels.
While the current situation has been attributed mainly to pricing and financial uncertainty, industry officials believe a prolonged period of low inventories could create additional challenges for maintaining a stable diesel supply across the country.
