Surplus of HSD stock: PSO asked to re-evaluate HSD quantities contracted with Kuwait Petroleum Company

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has directed Pakistan State Oil (PSO) to reevaluate the quantities of High-Speed Diesel (HSD) contracted with Kuwait Petroleum Company (KPC), due to a surplus of HSD stock in the country.

In a recent letter, Ogra’s Senior Executive Director (OSC) noted discrepancies in stock reporting. The OCAC daily fact sheet indicated 759,256 metric tons of diesel as of August 30, 2024, while refineries reported 770,000 metric tons, which inaccurately included 94,443 metric tons of line fill not available for sale. The corrected stock figure stands at approximately 664,813 metric tons, sufficient for 44 days of national demand. The Ogra has instructed PAPCO to amend its reporting accordingly.

HSD cargoes’ import: PSO granted exclusive rights

The Ogra emphasized that product estimates and plans are carefully reviewed during Product Review Meetings (PRMs) to ensure resilience in the National Oil Supply Chain. Continuous monitoring and adjustments are essential due to varying estimates and assumptions.

To alleviate refinery pressure, the Ogra has advised M/s GO to keep its cargo in bonded storage until the third week of September 2024, instead of rerouting or holding it at outer anchorage. This will also help avoid demurrage costs.

Copyright Business Recorder, 2024