OGRA Approves Import of 266,000 Metric Tons of Diesel Amid Rising Local Demand

The Oil and Gas Regulatory Authority (OGRA) has dismissed reports claiming that Pakistan has sufficient stocks of High-Speed Diesel (HSD) and does not require additional imports. The authority clarified that HSD sales have surged by 21% in October 2024 compared to projections, driven by the Federal Government’s anti-smuggling initiatives and the onset of the agricultural season.

This increase in sales has significantly depleted the previously reported high stock levels at refineries, leaving supplies sufficient for only 19 more days of national consumption, according to the latest sales and stock report.

Since September, OGRA has taken proactive measures to bolster stockpiles in anticipation of the agricultural season, scheduled maintenance shutdowns at PARCO, and expected demand spikes due to intensified actions against illegal fuel smuggling. These efforts have led to increased stock levels, which faced temporary scrutiny from certain industry stakeholders. However, the strategic buffer established by OGRA has proven vital in ensuring a consistent supply and mitigating potential shortages, reaffirming its commitment to national energy security.

During the monthly Product Review Meeting for November 2024, held on October 22, which included CEOs and managing directors from the oil industry alongside representatives from the Ministry of Petroleum, it was agreed to permit the import of approximately 266,000 metric tons of HSD to address the anticipated shortfall for November. This decision is crucial, particularly with the agricultural season underway and PARCO—responsible for nearly 50% of the country’s refinery production—offline for 40 days.

OGRA’s mandate emphasizes the importance of maintaining steady fuel supplies and preventing shortages. The import planning process for HSD aligns with that of other petroleum products, with volumes allocated to oil marketing companies based on their sales projections, local availability, and inventory levels.

This planning is an ongoing endeavor, where OGRA takes corrective measures whenever there is a significant divergence from the anticipated supply plan. The authority conducts a comprehensive review of the national oil supply chain every 10 to 15 days to make necessary adjustments according to market conditions.