ISLAMABAD: High sales of High-Speed Diesel (HSD) have depleted the stocks of fuel that were reported as high earlier by refineries and are now enough only to cater to 19 more days of national consumption/sales, as per the latest sales and stocks report.

The HSD sales in the current month of October 2024 are up by 21 percent against the projected sales due to anti-smuggling drive initiated by the federal government and the start of the agri season.

The Oil and Gas Regulatory Authority (OGRA) denied that the country is carrying healthy stocks of HSD, suggesting no more need to import HSD in view of the ample supplies available with the refineries.

Since September, OGRA – the sector’s regulator has proactively built-up stockpiles in anticipation of the agricultural season, scheduled maintenance shutdown at PARCO, and the anticipated increase in demand due to the government’s robust actions against illegal fuel smuggling.

This positively led to higher stocks, which temporarily faced media criticism from certain industry players.

The strategic buffer created by OGRA thus has been proved instrumental in maintaining supply continuity and avoiding potential shortages, stamping OGRA’s commitment to ensuring national energy security.

In the monthly Product Review Meeting for November, 2024 held on 22nd October that was attended by the CEO/MD’s of the oil industry and representatives from the Ministry of Petroleum, it was decided to allow import of around 266,000 M tons to fulfil the deficit during November, catering for the sales and replenishment of the depleted stocks. The month of November is critical due to the agri season and the country’s major supply source PARCO (contributing nearly 50 percent of the country’s refinery production) is offline for 40 days. The OGRA’s mandate requires it to strive to maintain steady fuel supplies and prevent any potential shortages.

The planning process for the imports of HSD is the same as other petroleum products and volumes are assigned to the oil marketing companies as per their sales projections/local availability and inventory levels. This planning is an ongoing process where corrective actions are taken when the divergence from the plan is significant and warrants correction.

The OGRA continuously reviews the national oil supply chain situation in every 10 to 15 days to make necessary adjustments (if required) according to market behaviour.

Copyright Business Recorder, 2024