The oil marketing companies (OMC) would have implemented a quota system in the midst of the current crisis.
ISLAMABAD:
The Pakistan Petrol Pump Owners Association (APPPOA) addressed a letter to Prime Minister Shehbaz Sharif on Wednesday, raising concerns over a possible oil shortage as delays occur in fuel supplies.
According to the letter, the oil marketing companies (OMC) have implemented a quota system in the midst of the current crisis in the Middle East.
“Either they don’t supply the product or they have limited it to the point that we can barely meet the needs of the public, or the gas stations dry up.”
The APPPOA claims that orders are placed but then canceled and trucks are stuck for long hours without receiving the product.
“We understand the current global situation, but we would like APPPOA to be taken into account when making decisions and communicated appropriately before imposing restrictions.”
The Association of Gasoline Pump Owners warned that this artificial shortage could generate panic among the population. They urged the government to intervene immediately and ensure that oil companies consult with stakeholders before imposing restrictions.
The association also called for urgent measures to improve the supply of petroleum products and avoid disruption to consumers.
No official response from the government or oil companies has yet been reported.
Oil for 28 days
The Oil and Gas Regulatory Authority (Ogra) has said that they have large oil reserves to cover the country’s consumption needs for 28 days, following preventive measures to import surplus fuel.
However, due to the war between the United States, Israel and Iran, two shipments of crude oil were trapped after the closure of the Strait of Hormuz. This canal is 33 kilometers (21 miles) wide and a fifth of the world’s oil passes through it.
Read: Iran war: Pak plans to import oil through Red Sea
Last year, the Strait of Hormuz was used to transport an average of 20 million barrels of crude oil, condensate and fuel per day. OPEC members such as Saudi Arabia, Iran, the United Arab Emirates, Kuwait and Iraq depend on this sea route to export most of their crude oil, mainly to Asia.
“We have ample stocks of gasoline and diesel to meet the country’s needs,” officials said, adding that the country could meet consumers’ fuel needs for 28 days.
However, reports have emerged that the government plans to import oil through the Red Sea from Saudi Arabia and the United Arab Emirates (UAE) due to the closure of the Strait of Hormuz, while also switching to a weekly oil price review mechanism.
Sources said The express PAkGazette that the government is currently working on several measures to ensure uninterrupted supply of oil amid the war between Iran, the United States and Israel.
Pakistan imports around one million barrels of oil monthly, with Saudi Arabia being a key oil exporter to the country. The United Arab Emirates also exports oil to Pakistan.
Sources said UAE-based ADNOC and Saudi Aramco will supply oil to Pakistan bypassing the Strait of Hormuz. One refinery has already imported some shipments through the Red Sea. A couple of oil tankers have arrived in Pakistan, while others are on their way.
Strait of Hormuz
The ships have been receiving VHF transmissions from Iran’s Revolutionary Guard saying that “no ship can pass the Strait of Hormuz.” The Revolutionary Guard said Iranian forces were in “full control” of the Strait of Hormuz, a vital route for global oil and gas supplies, and any ships attempting to pass risked damage from stray missiles or drones.
The Strait of Hormuz is also known as an energy corridor since millions of barrels of oil move from one part to another from here. PHOTO: REUTERS
The strait is the world’s most important oil export route, connecting the Gulf’s largest oil producers, such as Saudi Arabia, Iran, Iraq and the United Arab Emirates, with the Gulf of Oman and the Arabian Sea.
About 20% of the world’s oil, including that from producers Saudi Arabia, the United Arab Emirates, Iraq, Kuwait and Iran, passes through Hormuz along with large volumes of liquefied natural gas from Qatar.
Tehran has been threatening for years to block the narrow waterway in retaliation for any attack on the Islamic Republic.
Fourteen LNG tankers have shown signs of slowing, U-turning or stopping in or around the Strait, said Laura Page of consultancy Kpler, adding that the number will likely increase, posing risks for Qatar’s LNG exports.
