ISLAMABAD (MNN); The federal government on Thursday directed all provincial administrations to ensure strict monitoring and physical inspection of retail petrol stations to prevent hoarding of petroleum products and profiteering.
The directive instructs deputy commissioners across the country to conduct inspections within their respective districts and keep a close watch on fuel supply and storage at retail outlets.
Meanwhile, the government appointed Hamed Yaqoob Sheikh, a grade-22 officer of the Pakistan Administrative Service, as the new secretary of the Petroleum Division. The position had remained vacant for the past few months. Sheikh previously served as secretary finance and planning and was most recently working as secretary national food security.
In a statement, the Oil and Gas Regulatory Authority (Ogra) assured the public that the country currently possesses sufficient petroleum stocks to meet national demand and that there is no need for panic buying or hoarding.
Officials said the government is also considering shifting the petroleum pricing mechanism from the current fortnightly adjustment to a weekly review. Estimates suggest that petrol and diesel prices could increase by Rs25 to Rs50 per litre if the weekly revision system is introduced from March 8.
Authorities are also examining additional measures to maintain fuel supplies and reduce consumption, including providing financial cover to oil marketing companies to ensure sufficient imports and encouraging government institutions and the private sector to adopt work-from-home arrangements.
Ogra said it was closely monitoring the petroleum supply chain in view of the prevailing geopolitical situation to ensure uninterrupted availability of fuel across the country.
“The existing stock position remains comfortable and well within the prescribed requirements,” the regulator stated.
The authority warned that strict action would be taken against anyone found illegally hoarding or storing petroleum products at unauthorized locations. Any premises involved in illegal storage would be sealed immediately.
Ogra noted that some elements might attempt to hoard fuel during uncertain circumstances to make illegal profits. To prevent such practices, provincial chief secretaries have been asked to instruct deputy commissioners to intensify inspections.
Field teams of Ogra are also conducting checks at oil depots and retail outlets to ensure smooth fuel supply and prevent malpractice.
The regulator urged the public not to believe rumours and to continue normal fuel consumption patterns, emphasizing that the country’s petroleum supply situation remains stable.
The advisory comes as the war between the United States and Israel on one side and Iran on the other entered its sixth day, raising concerns about disruptions in global oil supply. Shipping through the Strait of Hormuz — a key route for international oil shipments — has been affected due to the conflict.
Finance Minister Muhammad Aurangzeb said there was currently no fuel shortage in Pakistan but warned that the situation could become serious if the conflict continued for a prolonged period.
Pakistan has already requested Saudi Arabia to facilitate alternative oil shipments through the Red Sea route to maintain its fuel supply chain.
Separately, the Oil Marketing Association of Pakistan (OMAP) has written to the Ogra chairman expressing serious concerns regarding supply commitments by local refineries.
According to the letter, oil marketing companies had planned their supply strategies based on confirmed commitments made during the last product review meeting. However, refineries later deviated from the agreed volumes and introduced a new allocation system, supplying limited quantities based on certain averages.
OMAP said many companies had not arranged import cargoes due to the previously finalized allocations and now faced difficulties in securing immediate imports.
The association warned that reduced refinery supplies were rapidly depleting the mandatory 21-day fuel stock cover maintained by oil marketing companies.
OMAP cautioned that if the situation continued, fuel stocks could soon reach critical levels despite current assurances of adequate supplies.
The association urged Ogra to intervene immediately and ensure that refineries strictly follow their agreed supply commitments, while taking strict regulatory action and imposing heavy penalties against any refinery found violating these agreements.
