Govt alerted about possible hoarding of POL products

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) and the Oil Companies Advisory Council (OCAC) on Thursday alerted the government to possible hoarding of petroleum products across parts of the country, amid expectations of a potential increase in prices.

The issue came under detailed discussion at a meeting of the National Coordination and Management Council (NCMC) on Thursday to conduct a comprehensive review of the availability, supply chain dynamics, and pricing behaviour of petroleum products across the country.

The meeting was attended by senior representatives of key stakeholders, including the Oil Companies Advisory Council (OCAC), the Federal Board of Revenue (FBR), Ogra and other relevant government departments and regulatory bodies.

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The participation of multiple institutions reflected the seriousness with which the government is treating the issue of petroleum supply and price stability, particularly in the context of rising consumption patterns and volatile international oil markets.

The committee was informed that petroleum product stocks in the country remain sufficient to meet existing demand levels. However, a significant and unusual spike in sales during the first half of July has raised red flags among regulators and industry stakeholders.

Data presented by Ogra indicated that the consumption of petroleum products—particularly petrol and high-speed diesel — witnessed an abnormal increase during the first 15 days of the month. This surge, officials believe, is not entirely attributable to seasonal or economic factors, but may partly be driven by speculative behaviour in the market.

Sources privy to the discussions stated that such sudden increases in sales volumes are often linked to expectations of price revisions, prompting dealers and distributors to stockpile products in anticipation of higher margins in the near future.

Ogra’s analysis, shared during the meeting, pointed towards the likelihood of hoarding practices, particularly at the retail and distribution levels.

The regulator cautioned that such activities, if left unchecked, could distort market dynamics, create artificial shortages, and ultimately inconvenience consumers.

Representatives of the Oil Companies Advisory Council (OCAC) also briefed the meeting on emerging supply-side challenges, including logistical constraints, distribution bottlenecks, and operational issues faced by oil marketing companies (OMCs).

However, the NCMC observed that many of the concerns raised by OCAC were linked to the sudden spike in demand rather than structural deficiencies in supply. The committee noted that while the oil supply chain remains intact, abnormal consumption patterns can strain distribution networks and create temporary imbalances in availability.

The OCAC maintained that oil marketing companies are making all-out efforts to ensure uninterrupted supply across the country, but emphasised the need for coordinated action by regulators and provincial authorities to address hoarding and speculative stocking.

Taking serious notice of the situation, the NCMC emphasised the need for a more proactive and robust enforcement mechanism by Ogra to curb hoarding and prevent market manipulation.

The committee urged Ogra to intensify monitoring of petroleum product movement, storage, and sales at all levels of the supply chain, including refineries, depots, distributors, and retail outlets. It was stressed that any irregularities or suspicious patterns must be promptly investigated and addressed through regulatory action.

In addition, provincial governments were directed to play an active role in ensuring compliance at the ground level.

The NCMC called upon provincial administrations to conduct inspections, enforce stock limits where necessary, and take strict action against those found involved in hoarding or profiteering.

Officials highlighted that coordination between federal and provincial authorities is critical to maintaining market stability, particularly in a sector as sensitive and essential as petroleum.

Copyright Business Recorder, 2026