Petrol dealers warn pumps may close as supply falls

Petrol dealers on Thursday warned that fuel stations could begin shutting down from Monday if oil marketing companies do not restore supplies, alleging a sharp reduction in deliveries of petrol and diesel across the country.

Leaders of the Pakistan Petroleum Dealers Association said diesel supply to pumps has dropped to around 20 percent, while petrol deliveries have also been curtailed significantly. Central Secretary General Chaudhry Irfan Elahi said the declining supply had created an alarming situation for retailers.

Speaking at a press conference at the Lahore Press Club, Elahi claimed diesel prices had risen by Rs17 and petrol prices by as much as Rs35 amid the disruption. Central Punjab President Nauman Majeed said petrol supply had been reduced by roughly 50 percent and alleged that some private companies were hoarding petroleum products.

Lahore President Jehanzaib Malik said oil marketing companies had halted supply to pumps and urged the government to ensure deliveries according to market demand. He warned that stations could start closing if the situation continues.

A day earlier, the All Pakistan Petrol Pump Owners Association wrote to Prime Minister Shehbaz Sharif, raising concerns about a possible shortage and claiming that oil marketing companies had imposed a quota system during the ongoing Middle East crisis.

Regulators, however, said fuel stocks remain sufficient. The Oil and Gas Regulatory Authority said the country currently holds petroleum reserves equal to about 28 days of consumption after importing surplus fuel as a precautionary measure. Officials said petrol and diesel stocks are adequate for the same period, while crude oil reserves cover about 10 days and liquefied petroleum gas stocks about 15 days.

The supply concerns come amid disruptions to shipments through the Strait of Hormuz following the US and Israel’s attack on Iran. The waterway carries roughly a fifth of global oil shipments and remains a key route for producers including Saudi Arabia, Iran, Iraq, Kuwait and the United Arab Emirates.

Officials said Pakistan is exploring alternative import routes via the Red Sea, with additional supplies expected from Saudi Arabia and the UAE through companies such as Saudi Aramco and ADNOC. Some shipments have already reached Pakistan while others are on the way.

Finance Minister Muhammad Aurangzeb said the government was closely monitoring the situation and preparing conservation measures to manage fuel demand if disruptions persist. He said Pakistan currently holds sufficient fuel stocks for this month and there is no immediate cause for concern.