Govt rules out additional fuel conservation measures

Islamabad, September 23 - The Pakistani government has dismissed the prospect of implementing supplementary fuel conservation measures, informing the National Assembly that the nation's petrol reserves can sustain supplies for 22 days and diesel stocks for 30 days. Minister for Petroleum Ali Pervaiz Malik made this statement in response to a query from Member National Assembly Sharmila Faruqui.

Speaking about the current petroleum situation, Malik affirmed that austerity measures currently in effect would persist. He further highlighted that the nation's present petroleum reserves are sufficient to fulfill the country's requirements.

As of September 22, the country's petrol inventory was approximately 395,000 tonnes, which, when combined with cargoes at berth and outer anchorage, amounted to around 506,000 tonnes. This amount equates to roughly 22 days of supply at an average daily sales rate of 22,500 tonnes.

Regarding diesel, Malik reported that stocks were around 568,000 tonnes, adequate for approximately 30 days at an average daily consumption of 19,000 tonnes. The minister disclosed that the government had arranged for petrol imports of about 511,000 tonnes for September, accounting for a demand of 692,000 tonnes and domestic refinery supplies of 262,000 tonnes. No diesel imports were planned due to healthy opening stocks and anticipated refinery supplies of around 555,000 tonnes.

Malik clarified that the government regularly reviews demand, refinery output, and import requirements on a monthly basis, with the Oil and Gas Regulatory Authority (Ogra) coordinating with refineries, oil marketing companies, and the Petroleum Division to ensure continuous supplies.

Regarding fluctuations in petrol sales, Malik attributed the 18 percent year-on-year increase in July to summer tourism and dealers' advance inventory-building. He noted a subsequent decline of around nine percent in August compared to July, indicating a return to regular fuel purchases.

The minister also explained that petrol and diesel prices are based on a seven-day rolling average of Platts free-on-board Arab Gulf prices. Ogra is authorized to calculate and publish daily ex-depot prices without prior approval from the federal government or the prime minister. To curb hoarding, diversion, and misuse of petroleum products, oil marketing companies were instructed to investigate irregular sales at retail outlets and Ogra field teams could collaborate with provincial law-enforcement agencies to investigate suspected violations and enforce legal action.

In terms of payments to oil marketing companies, Malik mentioned that the government had disbursed Rs53.8 billion of the total price-differential claims of Rs120.3 billion. Further payments would be made after verifying supporting documents and an audit by an Ogra-appointed auditor. The claims are currently under review, and additional disbursements will be made once the prescribed checks are completed.