Ministry of Petroleum informed a joint meeting of Senate's Standing Committees on Finance, Water and Power, and Petroleum that the exceptionally high sales coupled with delays in imports and caused the petrol crisis. The meeting was further told that average sales of Premier Motor Gasoline (PMG) increased to 1,50,00 metric tons since January 1, 2015 from around 11000-12000 metric tons per day.
Minister for Petroleum Shahid Khaqan Abbasi stated that the price of petrol was now competing with CNG in the areas where Compressed Natural Gas is also available. The PARCO refinery faced a shut down due to tripping of 11 KV lines in Muzzafargarh area, which resulted in stoppage of PMG supply from PARCO, the largest producer of Motor Gasoline in the country, he said.
The minister further said that the National Refinery was facing technical problems that caused its shutdown; besides two PNSC vessels carrying MOGAS faced unexpected delay. The exceptionally high sales coupled with delays in imports caused the petrol crisis, the minister said.
He added that Ministry of Petroleum and Natural Resources had taken immediate measures and the product was arranged from Karachi, Mehmood Kot and Attock Refinery to the areas facing product shortages. Oil Marketing Companies (OMCs) enhanced their supplies to 15500 MT per day from normal 12000 MT per day. In addition, refineries are also supplying 4,450 MT per day to OMCs. Tanker with 22000 MT arrived on 20.1.2015 and PSO vessel carrying 50000MT and Hascol vessel carrying 22000 MT are expected to arrive on 24-25/01/2015
"The Ministry is taking measures to counter the situation, additional supplies have been arranged and availability will normalise during current week. Average per day demand of MOGAS during December, 2014 in the country was 12,290 MT and total stock of MOGAS in the country as on 31-12-2014 were 108547 MT, sufficient for nine days. Due to substantial decrease in the retail prices, the sale of MOGAS on 01-01-2015 increased to 40,252 MT against the projected demand of 12,316 MT, which depleted the stocks. Sales on 02-01-2015 were again very high of 20,686 MT and on 03-01-2015 were 22,732 MT, this further depleted the stocks. On average up to 20-01-2015 daily sales were around 15000 MT against daily demand of 12315 MT or 60,000 MT," he told the committee.
During monthly product review meeting held on 07-01-2015, it was stated that demand was 381,800 MT and refinery production 137,960 MT, reflecting a deficit of 243,840 MT which was met through import 274,000 MT. The Oil Marketing Companies (OMCs) have arranged 30,160 MT imports more than demand to build up stocks, so for 148,120 MT have been imported of which PSO imports are 102,692 MT, APL 9,712 MT, HPL 1300 and SPL 22,724 MT. SPL tanker with 22000 MT MS arrived on 20.1.2015, PSO's vessel carrying 50000 MT and Hascol vessel carrying 32000 MT are expected to arrive on 24-25/1/2015, Oil Marketing Companies (OMCs) have enhanced their supplies to 15500 MT per day from normal 12000 MT per day from 18-01-2015.
In addition to above local refineries are also supplying 4,450 MT per day to OMCs. The Minister stated that Pakistan was surplus in PMG till 2007-08. Since then due to various factors PMG consumption was growing exponentially on a CAGR 18 percent. He said that the country's consumption increased from around 1 million MT in 2007-08 to more than 3.8 million MT in 2013-14 while the local refinery production of Premier Motor Gasoline (PMG) was stagnant at 1.4 million MT and the country was dependent on imports to fulfil the demand. The main contributing factors in Premier Motor Gasoline (PMG) growth is exponential increase in two wheeler population, CNG non-availability and use in generators due to load shedding, he added.