Oil Industry Warns of Potential Localized Fuel Supply Challenges in Pakistan

Pakistan’s oil industry has urged the government to take immediate measures to help maintain a stable fuel supply, citing low petrol inventories, customs clearance delays, rising demand, and financial pressures affecting fuel imports.

In a letter addressed to Federal Minister for Petroleum Ali Pervaiz Malik, the Oil Companies Advisory Council (OCAC) highlighted several operational challenges that, if not addressed promptly, could affect fuel availability in some parts of the country.

Industry Highlights Low Fuel Inventories

According to the OCAC, Pakistan currently holds approximately 370,000 metric tons of petrol, representing around 15 days of estimated national consumption.

The council noted that a portion of recently imported fuel has not yet entered the supply chain because customs clearance is pending through the WEBOC system, reducing the volume of fuel immediately available for distribution.

Timely Cargo Clearance Considered Important

The industry body said several petrol cargoes are scheduled to arrive during the week and emphasized that their prompt customs clearance will be important for maintaining uninterrupted fuel supplies, particularly in inland regions.

It also stated that fuel inventories have been under additional pressure following changes to previously planned import arrangements earlier this year.

Financial Challenges Facing Oil Companies

The OCAC said oil marketing companies are also facing liquidity challenges due to outstanding Price Differential Claims (PDCs), which it says have affected their ability to finance fuel imports efficiently.

According to the council, rising international oil prices could further increase the financial resources required to maintain adequate fuel stocks.

Industry Calls for Government Action

The OCAC has requested that the government:

• Expedite customs clearance of imported petroleum cargoes.
• Facilitate the smooth transportation of fuel across the country.
• Address outstanding financial claims to improve the industry’s cash flow.

The council said these measures would help support a consistent fuel supply and reduce the risk of localized distribution challenges if demand remains elevated.

No official announcement has been issued indicating a nationwide fuel shortage, and authorities continue to monitor the country’s petroleum supply situation.