ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has denied reports of an ongoing fuel shortage in the country, assuring that the supply of petroleum products remains stable across Pakistan.
In a statement issued on Tuesday, an Ogra spokesperson said that although clearance of imported petroleum consignments had been briefly delayed earlier, the issue has now been resolved.
The spokesperson added that two ships carrying petrol and diesel from different companies were cleared today, further ensuring smooth supply nationwide.
The clarification comes amid growing industry concern following the Sindh government’s decision to restore a 100% bank guarantee under the Sindh Infrastructure Development Cess (IDC).
The move reportedly left several petroleum cargoes stranded at Karachi ports, prompting warnings of a possible fuel crisis.
According to The News, the Oil Companies Advisory Council (OCAC) in a letter to the Sindh chief minister and federal authorities, said that at least five major shipments, including petrol and diesel for PSO, HPL, PGL, and Parco, are awaiting customs clearance.
The council warned that petrol reserves at Keamari are running low and that further delays could cause nationwide shortages, especially during the ongoing agricultural season.
“The oil supply chain is on the brink of collapse. Recovery could take over two weeks if cargoes are not cleared now,” the OCAC stated.
The dispute stems from the 1.8% IDC imposed by the Sindh and Balochistan governments on imported petroleum products.
While the Supreme Court continues to hear the case, the Sindh Excise Department has recently withdrawn a temporary arrangement that allowed undertakings instead of bank guarantees.
Now, it is demanding billions in guarantees per shipment, a move the industry says it cannot afford.
With regulated prices, limited credit, and narrow profit margins, the OCAC estimated that IDC adds more than Rs3 per litre to fuel costs, an increase that cannot be passed on to consumers.
The council has urged the Federal Board of Revenue (FBR) and Pakistan Customs to release all pending shipments without bank guarantees and called for a broader policy solution, including the formal recognition that petroleum pricing falls under federal authority, the inclusion of IDC in pricing formulas, and a mechanism to address past IDC dues.
It further noted that Punjab and Khyber Pakhtunkhwa have already exempted petroleum products from the IDC, in line with federal policy.
The OCAC cautioned that without immediate intervention, Pakistan could face shutdowns of fuel stations, transportation disruptions, and severe impacts on agriculture and the broader economy.