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OGRA spokesperson says fuel distribution, supply across the country remain unaffected, with no disruptions
People wait for their turn to get fuel at a petrol station in Peshawar on January 30, 2023. Photo: Reuters/ File
KARACHI:
The Oil and Gas Regulatory Authority clarified that there is no shortage of fuel in the country. The Authority dispelled the fears of a nationwide crisis triggered by a delay in the clearance of petroleum consignments at Karachi Port due to the imposition of a 1.8% Sindh Infrastructure Development cess by the provincial government.
According to OGRA spokesperson Imran Ghaznavi, the clearance of consignments of imported petroleum products was temporarily delayed. However, PSO’s consignment of diesel and WAFI’s petrol have been cleared. He assured that fuel distribution and supply across the country remain unaffected, with no disruptions.
Read More: Fuel shortage temporarily eases as Sindh clears PSO vessel
The imposition of the 1.8% cess by the Sindh government has created concerns within the oil sector, as it could increase fuel prices by over Rs3 per litre and ultimately burden consumers. Although prices are regulated, the added levy raises costs throughout the supply chain.
The Oil Companies Advisory Council (OCAC) in a letter to Sindh Chief Minister Murad Ali Shah warned that petroleum cargoes currently being discharged, as well as vessels anchored at ports, required immediate customs clearance to avoid disruption in the national fuel supply chain.
Following the mounting concerns, the Sindh government cleared a PSO vessel on a 15-day undertaking, temporarily averting the threat of a fuel shortage.
Sources said that other oil marketing companies (OMCs) are also expected to have their consignments cleared under similar 15-day bank guarantee arrangements, instead of full upfront guarantees.
OMCs have expressed reluctance to provide 100% bank guarantees, arguing that the move would significantly strain their cash flow. Officials estimate that the additional cost associated with the cess could result in a price impact of at least Rs3 per litre for consumers.
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Meanwhile, the Sindh Excise Department has issued an urgent notice to OMCs, instructing them to submit the required bank guarantees instead of undertakings. The department stated that pending cases would only be processed once guarantees are received.
The OCAC letter highlighted that PSO’s oil tankers — MT Islam 2 and MT Hanifa — are currently berthed and awaiting clearance, while oil stocks at the Keamari terminal are running low. It warned that immediate clearance is essential to maintain continuity in the petroleum supply chain nationwide.
Echoing the warning, the Oil Marketing Association of Pakistan (OMAP) said that the new policy could disrupt petroleum imports. OMAP Chairman Tariq Wazir Ali termed the cess and the bank guarantee requirement a ‘serious threat’ to Pakistan’s energy security.
“This issue requires urgent attention,” Ali cautioned. “If timely action is not taken, the country could face a severe shortage of petrol and diesel, impacting both the economy and industry.”
