Private oil firms cut operations, PSO shoulders burden amid fuel supply disruptions in Punjab, Islamabad

Petroleum Division instructs district administrations to maintain uninterrupted supply of petroleum products

Many private oil companies have reduced petroleum product fleet operations, instructing oil tankers already on the road to offload stocks at the nearest stations to avoid potential mishaps. This disruption has left retail pumps in key cities like Lahore, Rawalpindi, and Islamabad struggling to meet fuel demands. 

The situation originated as a result of the government’s strict lockdown of major cities, motorways, and highways to counter the PTI’s march on the federal capital which severely disrupted the supply chain of petroleum products, particularly in Punjab and Islamabad.

With private oil marketing companies scaling back operations, the burden has shifted to the state-run Pakistan State Oil (PSO) to ensure fuel availability. PSO alerted federal and provincial governments and the Oil and Gas Regulatory Authority (OGRA) about the critical supply situation. 

The company sought urgent intervention from authorities, including the Punjab Chief Secretary, police chiefs, and district administrations, to facilitate the movement of fuel tankers, particularly in the Lahore Division.

“The closure of highways has significantly delayed fuel transportation, resulting in an acute risk of stock depletion at fuel stations,” PSO warned in its communication. 

It emphasized that the Lahore Division, as a major economic hub, was especially at risk, with essential services, daily operations, and livelihoods being adversely affected.

The company called for “unrestricted passage of fuel tankers” to stabilize the local situation and prevent a broader crisis. PSO explained that ensuring a steady fuel supply would help mitigate the risk of shortages and restore normalcy in affected areas.

According to an earlier report by Profit, the Oil Companies Advisory Council (OCAC), representative of nearly three dozen oil marketing companies and refineries, appealed to key authorities, including the Chief Secretary of Punjab and Inspector Generals of Punjab and Islamabad Police, to urgently facilitate fuel transportation.

In a letter dated November 25, 2024, OCAC highlighted the critical situation, emphasizing that road closures have hampered fuel deliveries from Machike to Lahore. The supply chain disruption has sparked fears of fuel shortages, which could severely impact essential services, commercial activities, and daily operations in Lahore, a key economic hub.

“The inability to replenish fuel supplies promptly is adversely affecting essential services, daily operations, and the livelihoods of millions in the region, and its surrounding areas, ” the letter stated. It urged authorities to provide special convoys for safe and secure transport of tankers, ensuring uninterrupted fuel availability.

On the other hand, the Ministry of Energy (Petroleum Division) has instructed district administrations in Islamabad, Rawalpindi, and Lahore to implement a comprehensive plan to maintain the uninterrupted supply of petroleum products amid the ongoing lockdown caused by political protests.

The ministry urged commissioners in these regions to issue immediate instructions to ensure safe and secure transit of fuel tankers. The Oil and Gas Regulatory Authority (OGRA) is also coordinating with local administrations to address the issue.

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