Karachi November 7 2022: Oil Companies Advisory Council (OCAC) foresee product availability challenges in various pockets of the country in days to come, due to inadequate imports and limited local avails due to lower product imports.
In a letter written to OGRA, OCAC stated that HSD imports in November might be challenging owing to limited availability of molecules in the International market and very high premiums; hence so far, only PSO has booked laycans of 220,000 metric ton HSD & 210,000 metric ton MS by Flow Petroleum against import requirement of HSD 440,000 metric ton and MS 482,000 metric ton.
However, it is alarming to note that MS import laycans corresponding to the anticipated sales volume and stock cover have also not been booked.
The import plan should have been finalized by the Importers but as of today, there is a deficit in the import plan which is also evident in the Tanker Program. This critical issue was also highlighted in the meeting held on November 01, 2022 with the industry representatives, however no firm commitments have been received from the importing OMCs in writing.
It is worth mentioning that quite a few OMCs have had October sales much higher than the anticipated demand and have been continuously carrying low stocks of fuel products since October 2022. Some OMCs who were supposed to bring imports for use in October received their shipments in the last week of October hence product was not available for use during the month it was intended for. Similarly, some OMCs who were allowed imports in the previous month for use next month have already consumed the parcels in advance.
Keeping in view the ongoing sales trend and the number of days cover currently being maintained by the OMCs, OCAC foresee product availability challenges in various pockets of the country in days to come, due to inadequate imports and limited local avails.
OCAC request OGRA to look into this matter and issue necessary directives to the importing OMCs for strict adherence to their Imports plan along with written confirmation in order to avoid any untoward situation.
