By SKM
February 12, 2025
ISLAMABAD: The local refineries have asked OGRA to defer the import of Motor Spirit (MS) and High Speed Diesel till March as the country has a stock of petrol for 36 days and diesel for 39 days.
A letter signed by managing directors of five refineries—Pak Arab Refinery Company Limited (PARCO) PARCO, Cnergyico Pakistan Limited (CPL), National Refinery Limited (NRL), Pakistan Refinery Limited (PRL) and, Attock Refinery Limited (ARL) was sent to OGRA on February 11, 2025 which also raised the issue of non-upliftment of the POL products by oil marketing companies (OMCs).
While referring to the meeting with OGRA chairman in the chair which was held on February 10, 2025, to review the upliftment status of MS and HSD from refineries, the letter available with Exclusivewaves.com.pk highlighted that refineries are facing serious challenge in sustaining operations due to the failure of OMCs to uplift committed quantities of the POL products.
According to DSSP report dated Feb 10, 2025, the country’s MS and HSD sales have fallen short by 20% and 31% respectively, during the period of Feb 1-9, 2025, against the projected demand for February 2025. This situation necessitates an immediate reassessment of import cargoes for both products.
“Although OMCs are importing MS and HSD according to plan, the refineries are facing significant product upliftment issues as their committed volumes have not been uplifted by OMCs. As such, imports have not been adjusted to align with actual sales trends, which is transferring all the demand shortfall issues on the refineries. Consequent to reduced sales and unadjusted imports, the stock days cover for MS and HSD currently stands at 36 days and 39 days, respectively, as noted during the meeting,” argues the letter.
So refineries in their correspondence have suggested to OGRA that all upcoming imports of MS and HSD be either deferred to March 2025 or remain in bonded storages until March 2025.
The letter also referred to the discussion in the February 10 meeting that the ongoing lack of rainfall in the country will likely affect HSD sales in the coming months due to delays in the harvesting season. This, combined with the fact that it coincides with the holy month of Ramzan during which sales of both MS and HSD are typically lower- will put additional pressure on refinery upliftment, if imports have not been reassessed and curtailed to reflect stocks and sales trends.
In the letter, refineries sought an immediate intervention to ensure upliftment of committed volumes for both MS and HSD and restrict upcoming imports. Ends
