The current shortage of petrol across the country especially in Punjab is attributed to non-availability coupled with non-functioning of plate-formers of three refineries, well informed sources told Business Recorder. Non-availability of petrol continues despite Prime Minister's directives to Pakistan State Oil (PSO) to resolve the issue, and the public continues to face difficulties.
In parts of the country, petrol pumps were seen overcharging consumers and long queues were witnessed at pumps where petrol was available. "Petrol shortage is expected to continue for another couple of days as the oil vessel will berth on Saturday," said an oil industry analyst on condition of anonymity. Besides, Sindh, Muzaffarabad, petrol shortage continues in Lahore, Multan, Minwali, Dera Ghazi Khan, Bahawalpur, Muzaffargarh, Rajanpur, Lodhran, Khanewal and Vehari.
One of the oil industry stakeholders told Business Recorder that the plate-formers of two refineries ie Attock Oil Refinery and National Oil Refinery are not functioning. The plate-former of National Oil Refinery has started regeneration. He added that Pakistan Oil Refinery's plate-former also stopped working, and it will take time to come online. The federal government has allocated Rs 7.921 billion subsidy for refineries in 2011-12 against Rs 10.807 billion earmarked in 2010-11.
Refineries, sources said, are annoyed at the government's decision to slash subsidy and a reduced supply may be their response, commented an insider. The Oil and Gas Regulatory Authority (OGRA) has issued notices to two refineries seeking reasons for a reduction in supply. Refineries maintain that they supply oil at a rate lower than imported refined oil and therefore they deserve some recompense for their billions of rupees worth of investment. "If the government imports refined petrol its price will be Rs 6 higher than petrol being supplied by the local refineries," said another analyst.
According to him, if the government relies on imported oil, roads from Gwadar to upcountry will be empty of vehicular traffic as there is no infrastructure to transport it upcountry. Local refineries, he added, cannot supply petroleum products at the dumping price of Saudi Arabia. The Minister for Petroleum and Natural Resources, Dr Asim Hussain, a very close aide to the President Asif Ali, is currently in the United Kingdom and is therefore unable to deal with this shortage.
Meanwhile, Prime Minister asked the Secretary Petroleum to instruct the Attock Oil Refinery to remove the technical fault urgently. The fault had ultimately caused shortage of gasoline supply to some areas of Punjab and Sindh. The Prime Minister gave these instructions during a meeting with the Secretary Petroleum and Nawab Hasan Ali, Director PARCO at the PM House here.
Gilani directed the Ministry of Petroleum to submit the proposed plan for establishment of power project in PARCO Refinery at Kot Adu, Muzaffargarh. He also directed to finalise a plan for the proposed Khalifa Costal Refinery; a joint venture with UAE. He advised the Ministry to undertake the projects on fast-track and ordered immediate preparation to attract this biggest foreign direct investment.
The Prime Minister said exploration and development of energy resources was his government's top priority. He said it was extremely important to enhance production of oil and gas from domestic resources to bring the country out of difficulties and accelerate pace of development.
He discussed the possibilities of establishment of a refinery project close to Gwadar. He also discussed various issues relating to PARCO and exploration of new oil and gas fields. The Secretary Petroleum and Director PARCO briefed the Prime Minister about the proposed Khalifa Costal Refinery project. The Director PARCO stated that this project has a potential to attract US $6 billion foreign direct investment in the country. The project also has a big potential to export surplus petroleum production after meeting the country demands, he said.