ISLAMABAD: The federal government has initiated an inquiry against Oil Marketing Companies (OMCs) that will ascertain their alleged involvement in the current oil supply crisis.
According to a report published in Express Tribune, the inquiry committee which will look into alleged hoarding of petroleum products will be headed by the Federal Investigation Agency’s (FIA) director general oil and will also include representation from Pakistan State Oil (PSO).
According to the report, he Oil Companies Advisory Council (OCAC) has also clarified that OMCs have been replenishing their stocks through supplies from local refineries and imported shipments.
In a statement issued on Monday, OCAC informed, “For the month of June, a total of around 850,000 metric tonnes (MT) of petrol is being supplied from local refineries and imports to the distribution & retail network of the country. The current sales of petrol in the country are exceptionally high (50pc growth) due to the easing of Covid-19 lockdown in the past few weeks, causing depletion of stocks and low price of the product.”
Earlier, on June 4, the Competition Commission of Pakistan (CCP) had taken notice of public concerns and complaints about the shortage of petroleum products in the country and had initiated an inquiry to see whether such a shortage is the result of any anti-competitive activity.
The CCP’s inquiry will determine the possibility of the existence of any anti-competitive practices causing the shortage of fuel in the country and the undertakings involved in it.
The inquiry will further examine why the impact of the reduction in the prices of oil have not resulted in the corresponding reduction in the prices of the lubricants and other oil-based products, including the prices of hi-octane, which are primarily deregulated products.
Similarly, the Oil and Gas Regulatory Authority (OGRA) had also expressed its reservations last week regarding high prices of HOBC and had asked OMC’s to set prices at reasonable levels keeping in view the interests of the consumers.
