Pakistan’s federal government has directed provincial administrations to begin physical inspections of retail petrol stations through deputy commissioners in an effort to prevent hoarding and profiteering of petroleum products as concerns grow over regional tensions affecting global oil supply routes.
The directive was issued amid rising geopolitical uncertainty in the Middle East, which has disrupted key shipping lanes and triggered concerns about the stability of global energy supplies. Authorities have moved to tighten oversight of local fuel distribution networks to ensure uninterrupted availability across the country and to discourage speculative storage of petroleum products. The Oil and Gas Regulatory Authority (OGRA) has stated that Pakistan currently holds sufficient petroleum reserves to meet national consumption requirements and urged the public not to engage in panic buying. According to the regulator, existing fuel stock levels remain within the prescribed regulatory limits and are capable of sustaining national demand under normal conditions.
Officials said the government is closely monitoring the entire supply chain, including refineries, oil depots, and retail stations, to ensure fuel continues to reach consumers without disruption. OGRA warned that strict enforcement measures will be taken against any individuals or businesses found storing petroleum products illegally at unauthorized locations. Authorities have indicated that premises involved in unlawful hoarding activities will be sealed immediately. Under the new directive, provincial chief secretaries have been instructed to ensure deputy commissioners conduct on-ground inspections within their respective jurisdictions. These inspections aim to verify inventory levels at retail fuel stations and confirm compliance with regulatory requirements. OGRA has also intensified its own field monitoring efforts, carrying out inspections at oil depots and retail outlets to prevent manipulation of supply.
Despite these assurances, industry stakeholders have expressed concern about the current state of fuel supply across the country. The Pakistan Petroleum Dealers Association (PPDA) warned that petrol pumps nationwide currently have around 50 percent of their normal supply remaining and could begin shutting down operations starting Monday if replenishment does not occur.
PPDA Central Secretary General Chaudhry Irfan Elahi stated that diesel availability has declined significantly, falling to approximately 20 percent of usual supply levels, while petrol stocks have also been affected. The association has urged authorities to address the supply situation promptly to avoid disruptions at retail fuel stations. Lahore President of the association, Jehanzaib Malik, called on the government to ensure consistent fuel delivery to petrol pumps. He criticized inspection efforts focused primarily on retail outlets while supply depots remain under scrutiny, arguing that shortages at petrol pumps are largely the result of upstream supply issues. Malik warned that without immediate restoration of supply, retail stations could begin closing from Monday.
Central Punjab President Nauman Majeed echoed similar concerns, stating that petrol supply to retail outlets has been reduced by approximately 50 percent. He further alleged that some private companies have begun hoarding petroleum products, potentially worsening the supply imbalance. A day earlier, the All Pakistan Petrol Pump Owners Association formally communicated its concerns to Prime Minister Shehbaz Sharif through a written appeal, stating that restricted supplies were making it difficult for retail outlets to meet public demand.
Meanwhile, OGRA reiterated that the country remains capable of managing approximately 28 days of fuel consumption due to pre-emptive surplus imports arranged earlier. However, external logistical disruptions have complicated the supply situation. Several fuel cargoes destined for Pakistan remain stranded after the closure of the Strait of Hormuz following the recent United States and Israel attack on Iran. The strategic maritime route is heavily used by major oil exporters including Saudi Arabia, Iran, the United Arab Emirates, Kuwait, and Iraq to transport crude and refined products to Asian markets such as Pakistan, Sri Lanka, and Bangladesh.
In addition to external supply challenges, the Oil Marketing Association of Pakistan (OMAP) has raised concerns about domestic refinery practices that could further strain the national fuel supply chain. In a letter addressed to the chairman of OGRA, OMAP Chairman Tariq Wazir Ali stated that local refineries are deviating from petroleum product supply commitments agreed upon during the most recent Product Review Meeting.
According to the association, the volumes discussed during the meeting were mutually agreed upon, finalized, and formally locked for allocation. Based on those confirmed commitments, many oil marketing companies planned their distribution strategies and refrained from arranging import cargoes, expecting local refineries to provide the allocated volumes.
However, OMAP claims that refineries have recently introduced an allocation system under which significantly reduced quantities of petroleum products are being supplied to oil marketing companies. These reduced allocations are reportedly based on certain averages rather than the volumes previously finalized during the Product Review Meeting. The association described this move as a violation of the commitments made during the meeting. OMAP noted that most oil marketing companies do not currently have immediate import alternatives because supply planning was conducted based on the previously agreed refinery allocations.
At the same time, the association claims that refineries are maintaining sufficient stock levels while releasing smaller quantities to marketing companies, which is gradually eroding the mandatory 21-day stock cover maintained by oil marketing firms.
While OMAP emphasized that there is currently no immediate panic or confirmed product shortage in the market, it warned that continued supply restrictions could push stock levels toward critical thresholds. The association cautioned that if shortages emerge at retail stations or pumps are forced to shut down due to supply interruptions, responsibility for any resulting legal obligations should be shared by refineries and regulators for allowing deviations from previously agreed commitments.
OMAP has urged OGRA to intervene immediately and ensure that refineries adhere strictly to the supply volumes finalized during the Product Review Meeting. The association also called for strict regulatory action, including financial penalties, against any refinery found violating those commitments. Industry stakeholders expressed hope that prompt action by regulators would stabilize the petroleum market and prevent disruptions to Pakistan’s national fuel supply chain.
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