Lifting imported petrol from PSO: Chevron, Total reluctance caused shortage in Punjab

The reluctance of the oil marketing companies, Chevron and Total Parco Pakistan Limited (TPP), to lift imported petrol from Pakistan State Oil (PSO) and low production by Bosicor refinery has caused petrol shortage in the country, Business Recorder learnt on Sunday.
Sources said that PSO captured 48 percent share regarding sale of petrol and 52 percent sale share was held by other OMCs. But now PSO is compelled to meet 100 percent demand of petrol as the outlets of other OMCs, except Shell, had dried out due to closure of Parco refinery.
"Bosicor has also reduced production of petrol due to financial crunch under circular debt as it was facing problems to open letters of credit (L/Cs) to import crude oil," sources said. At present, the country maintains 90,000 tons of petrol and out of it PSO has stock of 70,000 tons. Sources said that Shell was lifting imported products from PSO to meet demand caused by closure of the country's largest refinery, Parco.
"PSO had offered imported petrol to Chevron and Total marketing companies but they both refused to take imported petrol," sources said, adding that these companies wanted locally produced petrol. PSO has also offered to import petrol in larger quantity if these OMCs would accept imported petrol.
Meanwhile, according to a statement issued here, the Minister for Petroleum and Natural Resources, Naveed Qamar, taking cognisance of complaint of petrol shortage, took stock of the situation and issued instructions for ensuring smooth supplies immediately across the country. The Prime Minister had earlier called the Minister, who is currently in Turkmenistan attending the TAPI gas pipeline steering committee meeting, to look into the matter expeditiously.
The Minister informed him that sufficient stocks, of about 90,000 tons of petrol, was available in the country, which is more than sufficient to cater for at least 18 days' requirement. In addition to this, about 4000 tons per day is being produced by local refineries. Hence, there is no shortage of petrol.
In this context, the Ministry of Petroleum, in consultation with oil marketing companies is making arrangements to expedite supplies from Karachi refineries, and imports. PSO is working round the clock.
The situation will further improve as Parco has already resumed operation and full production would be available by the evening of 19 September and morning of 20th September 2010. Ogra has also been advised to carry out surprise visits of petrol pumps to ensure that there is no hoarding/overcharging.
The spokesman of the Ministry of Petroleum and Natural Resources clarified the position with reference to the shortage of mogas (petrol) in Punjab, especially in Lahore, Gujranwala, and Multan that due to recent heavy rains and consequently floods in the country, mid-country refinery (Parco), which meets 20-25 percent of the country's demand was closed down from August 7, 2010.