Closure of CNG stations: petrol consumption up by 20,000 to 25,000 tons in Punjab

Average petrol consumption has increased by 20,000 to 25,000 tons in Punjab during the last two months due to partial suspension of gas supply to CNG stations under gas load management programme, which may increase the country''s import bill and add further pressure on foreign exchange reserves.
Sources told Business Recorder that a summary submitted by the Petroleum Ministry to the Economic Co-ordination Committee (ECC) of the Cabinet for opening of six abandoned depots revealed that petrol consumption had increased by 20,000 to 25,000 tons in Punjab during December 2013 and January 2014. An official maintained that increase in demand was obviously being met through imports, which was going to further increase pressure on foreign exchange reserves. The ministry stated that the government initially considered complete closure of CNG stations in Punjab for three months from December, 1 2013 under the gas load management programme. Although there was no complete closure of CNG outlets in Punjab during December, 2013 to February 7, 2014, an additional impact of 20,000-25,000 tons had been witnessed during December, 2013 and January, 2014. This reflects that the demand of petrol is expected to increase by 20,000-25,000 tons on average in February and March, 2014 as well. Various measures have been taken by the ministry and Oil and Gas Regulatory Authority (Ogra) including 20 days storage capacity to enhance POL stocks at various locations but these could not help improve the situation significantly.
The reduced availability of gas to CNG stations and use of petrol in generators have resulted in 21 % increase in demand for petrol in the country during last two years necessitating reopening of abandoned oil depots to overcome the shortages.
The Petroleum Ministry requested the ECC to reopen the six abandoned oil depots at Daulatpur, Khuzdar, Sangi, Habibabad, Kundian and Serai Naurang. The reopening of these depots would make available 26,000MT storage capacity in the system with Pakistan State Oil Company Limited (PSO) and Shell Pakistan Limited, which was approved by the ECC. The ministry also stated that total requirement of petroleum products are about 21 million tons. The resumption of six depots would lead to increase in availability of POL products.