ISLAMABAD: The federal cabinet on Tuesday directed the Petroleum Division and the Ogra to take action against artificial shortage of petrol and ensure regular supplies within 48-72 hours.

Taking notice of artificial shortage of petrol, the government asked the concerned authorities to take appropriate measures to resolve the issue.

The prime minister directed that "maximum" punitive action must be taken against all those responsible.

The Cabinet noted that the Ogra and the Petroleum Division had legal authority to physically enter and inspect oil companies' storage facilities.

The cabinet directed the Petroleum Ministry to form joint raiding teams comprising representatives of the Petroleum Division, the Ogra, the FIA, and the district administrations.

The teams shall inspect all petrol depots/storage. They have all authority to enter any site. Anyone found involved in hoarding the commodity will face full force of the law, including arrest and forced release of such stores.

Any company found not maintaining the mandatory stocks and supplies to its outlets, as per their license, "shall" face punitive actions, including suspension and cancellation of license and heavy fines.

The Ministry of Energy informed the cabinet, that while in June 2019 total supplies were 650,000 metric tons, while supplies arranged for June 2020 were 850,000 metric tons. The Cabinet urged the public not to engage in panic buying. The stocks that are being hoarded will be identified and ensured to be available in the market and action taken against hoarders.

The prime minister directed the Minister of Petroleum and the Ogra to ensure that every Oil Marketing Company (OMC) maintains 21 days' stock to meet its license conditions.

Sources said that the cabinet also approved action against those named in the sugar crisis inquiry report.

The federal cabinet, endorsing the decisions of the Economic Coordination Committee (ECC), has approved the privatization of the Pakistan Steel Mills with some instructions.

Prime Minister Imran Khan said that in the privatization of the Pakistan Steel Mills, securing national interests as well as benefit of the workers, should be kept in consideration.

Earlier, the government had approved the dismissal of 9,350 employees of the Pakistan Steel Mills with a collective payment of Rs20 billion.