OGRA Approves 200,000 Tonnes Diesel Imports for December Demand

The Oil and Gas Regulatory Authority (OGRA) has recently approved the import of 200,000 tonnes of diesel to meet the rising demand expected in December. This decision comes as the country faces a surge in diesel consumption, prompting the Pakistan State Oil (PSO) to secure three cargoes, while a private oil marketing company (OMC) will manage one cargo independently. The increase in demand is largely attributed to the government's intensified efforts to combat diesel smuggling from Iran, which has historically provided cheaper, albeit lower-quality, fuel.

In the past, smuggled diesel was readily available across the nation, but now it is primarily limited to Balochistan. Reports from dealers indicate a significant reduction in the supply of smuggled diesel, which has led to price hikes. This situation has effectively narrowed the price gap between locally available diesel and smuggled products, discouraging heavy vehicle operators from relying on smuggled fuel.

Local refineries had previously expressed their opposition to OGRA's decision in October, which allowed a private OMC to import high-speed diesel (HSD). They argued that domestic production was sufficient to meet the country's needs. However, industry experts now believe that the current surge in diesel demand requires a combination of local production and imports to ensure a stable supply.

As of now, Pakistan's HSD stock levels stand at approximately 300,000 tonnes, a significant decrease from the 500,000 tonnes recorded just a few months ago. This decline reflects an increase in legal sales, as the country has imported a total of 466,000 tonnes of HSD over the last four months. Monthly import figures reveal a steady rise: 98,000 tonnes in July, 147,000 tonnes in August, 131,000 tonnes in September, and 90,000 tonnes in October. With December approaching, industry insiders anticipate that these imports will help stabilize diesel supply amid the heightened demand.

The approval for diesel imports by OGRA is a crucial step in addressing the growing needs of the market. As the government continues to tackle the issue of diesel smuggling, it is essential for both local production and imports to work in tandem. This approach not only ensures a steady supply of diesel but also supports the economy by providing reliable fuel for transportation and industry. The coming months will be pivotal in determining how effectively these measures can meet the demands of consumers and businesses alike.