OGRA Responds to Reports of Petrol and Diesel Shortage in Coming Days

The Oil and Gas Regulatory Authority (Ogra) on Tuesday rejected reports of a fuel shortage in Pakistan, assuring that petroleum product supplies remain stable across the country. In an official statement, an Ogra spokesperson acknowledged a brief delay in the clearance of imported petroleum consignments earlier this week but confirmed that the situation has since normalized. The spokesperson added that two vessels carrying petrol and diesel from separate companies were cleared today, further stabilizing the national supply. The clarification comes amid industry concerns following the Sindh government’s decision to reinstate a 100% bank guarantee requirement under the Sindh Infrastructure Development Cess (IDC). The move reportedly left several petroleum cargoes stranded at Karachi ports, sparking fears of a potential nationwide shortage. The Oil Companies Advisory Council (OCAC) warned that the new IDC policy could disrupt the country’s fuel supply chain within days if not resolved promptly. In a letter to the Sindh chief minister and federal authorities, the OCAC said at least five major shipments for PSO, HPL, PGL, and Parco are awaiting customs clearance. With petrol stocks at Keamari running low, the industry cautioned that the situation could lead to severe shortages, especially during the ongoing agricultural season. The OCAC warned that the oil supply chain is “on the brink of collapse” and that recovery could take over two weeks if cargoes are not cleared immediately. The dispute centers on the 1.8% IDC levied by the Sindh and Balochistan governments on petroleum imports. While the Supreme Court is still hearing the case, the Sindh Excise Department has withdrawn an interim arrangement that previously allowed undertakings instead of bank guarantees, now demanding billions of rupees in guarantees per vessel, a financial burden the industry says it cannot bear. With regulated pricing, tight credit lines, and thin margins, the OCAC estimates that IDC adds over Rs. 3 per litre to fuel costs, a burden that cannot be passed on to consumers under current pricing rules. The council is urging the Federal Board of Revenue (FBR) and Pakistan Customs to clear all petroleum cargoes without bank guarantees and is calling for a policy-level resolution. Recommendations include formal recognition of petroleum pricing as a federal subject, inclusion of IDC in fuel pricing mechanisms, and a framework to recover past IDC dues. The OCAC also noted that Punjab and Khyber Pakhtunkhwa have already exempted petroleum products from IDC, aligning with federal jurisdiction.