Due to low imports and local availability, OGRA warned the government regarding the petrol and high-speed diesel shortage in the coming weeks.
According to the OGRA report, a shortfall of 210,000 HSD and 147,000 fuel was calculated. The meeting noted that November HSD imports may be difficult due to restricted availability. Only PSO booked 220,000 MT and 10,000 MT by Flow Petroleum.
Several OMCs had stronger October sales than expected.
According to the letter, the import of petrol required to meet needs and match the expected sales volume has not been scheduled. The importers were supposed to finalize the import plan, but as of now, there is a gap in the import plan, the letter read.
In addition to that, a few OMCs recorded sales for October higher than their expected demand since they had limited stocks of fuel products. They received fuel shipments in the last week of October which they were due to use for the entirety of October. The letter said that the OMCs who were permitted to import goods the month before for use in the following month had already used the shipments in advance.
Late last week, the ECC approved to increase in the margin of oil companies by 63% which shall be subject to the financial capacity and prior approval of the Ministry of Finance.
The OMC margin on petrol has been increased from Rs3.68 to Rs6 per litre. Whereas, the margin on diesel has also been approved to increase from Rs3.68 to Rs6 per litre.