The Oil Marketing Association of Pakistan (OMAP) has raised serious concerns over local refineries deviating from product supply commitments agreed during the recent Product Review Meeting, warning that the situation could disrupt the national fuel supply chain if immediate corrective measures are not taken.
In a letter addressed to the Chairman of the Oil and Gas Regulatory Authority, OMAP Chairman Tariq Wazir Ali stated that the volumes committed by local refineries during the last Product Review Meeting were mutually agreed, finalised, and formally locked.
Based on these confirmed allocations, most oil marketing companies planned their supply strategies accordingly and did not arrange import cargoes, relying on expected refinery supplies.
However, OMAP stated that local refineries have recently introduced an allocation system under which limited quantities of petroleum products are being offered to oil marketing companies based on certain averages rather than the agreed volumes finalised during the meeting. The association described this move as a clear violation of the commitments made at the Product Review Meeting.
The association noted that many oil marketing companies currently lack immediate import options, as no import planning was undertaken after the refinery allocations were finalised. At the same time, refineries are reportedly maintaining adequate stock levels while supplying significantly reduced volumes to marketing companies.
OMAP warned that the restricted supplies are eroding the mandatory 21-day stock cover maintained by oil marketing companies on a daily basis. While the association continues to communicate that there is no immediate panic or product shortage in the market, it cautioned that continued supply reductions could push stock levels to critical limits.
The association further stated that if shortages occur at retail outlets or fuel stations are forced to close due to supply disruptions, any legal obligations or liabilities arising from such shortages should be equally borne by the refineries and the regulator for allowing deviations from the agreed commitments.
OMAP has urged the Oil and Gas Regulatory Authority to immediately intervene and ensure that refineries strictly adhere to the committed supply volumes finalised during the Product Review Meeting. It also called for strict regulatory action, including substantial penalties, against any refinery found in violation of these commitments.
The association expressed hope that prompt regulatory action would prevent disruption to the national fuel supply chain and maintain stability in the petroleum market.