ISLAMABAD - Oil and Gas Regulatory Authority has decided to allow import of around 266,000 metric tons of high speed diesel (HSD), which has been termed by the local refineries a share violation of SIFC’s directive for giving first priority to upliftment from local refineries and in case of permission to import give first priority to PSO.
Despite offer from PSO during the product review meeting to advance one of its December cargo for arrival in November, if need be, Ogra has favoured a particular party in allowing it to import forecasted HSD deficit, official of a refinery told The Nation. Earlier spokesman Ogra said that HSD sales in the current month of October 2024 are up by 21% against the projected sales due to anti smuggling drive initiated by the federal government and the start of the agri season. The high sales have depleted the stocks that were reported as high earlier by refineries and are now enough only to cater for 19 more days of national consumption/sales, as per the latest sales and stocks report.
Since September, OGRA, the sector regulator, has proactively built-up stockpiles in anticipation of the agricultural season, scheduled maintenance shutdown at PARCO, and the anticipated increase in demand due to the government’s robust actions against illegal fuel smuggling. This positively led to higher stocks, which temporarily faced media criticism from certain industry players. The strategic buffer created by OGRA has thus has been proved instrumental in maintaining supply continuity and avoiding potential shortages, stamping OGRA’s commitment to ensuring national energy security.
In the monthly Product Review Meeting for November, 2024 held on 22nd October that was attended by the CEO/MDs of the oil industry and representatives from the Ministry of Petroleum, it was decided to allow import of around 266,000 metric tons to fulfill the deficit during November, catering for the sales and replenishment of the depleted stocks. The month of November is critical due to the agri season and the country’s major supply source PARCO (contributing nearly 50% of the country’s refinery production) is offline for 40 days. OGRA’s mandate requires it to strive to maintain steady fuel supplies and prevent any potential shortages.
While commenting on the Ogra’s decision of allowing 266000 MT of HSD, the refinery official said that the OGRA spokesman has conveniently avoided to respond to the criticism of favouring a particular party in allowing it to import forecasted deficit when PSO during the product review meeting offered to advance one of its December cargo for arrival in November, if need be. OGRA decision is also in violation of SIFC’s directive to give first priority to upliftment from local refineries and in case of permission to import give first priority to PSO. This is not the first time that OGRA has succumbed to pressure from influential sources.
