Regulator Directs OMCs to Prioritize Local Supply

In a recent development, the regulatory body overseeing the petroleum industry has directed Oil Marketing Companies (OMCs) to prioritize meeting the required quantities of petroleum products for efficient refinery operations. The regulator emphasized that OMCs should only consider resorting to imports if there is a genuine shortage in the market.

The directive came after all refineries collectively opposed an OMC's proposal to import 15,000 tons of High-Speed Diesel (HSD) in June 2024. This decision was made due to the existing surplus of diesel stocks within the country, making additional imports unnecessary at the time.

Refineries play a crucial role in processing crude oil into various petroleum products like gasoline, diesel, and jet fuel. To operate efficiently, refineries require a steady supply of raw materials and a balanced output of refined products. OMCs act as the bridge between refineries and consumers, ensuring the smooth distribution of petroleum products across the country.

By instructing OMCs to prioritize local supply and minimize unnecessary imports, the regulator aims to maintain stability in the domestic petroleum market. This decision not only helps in utilizing existing resources effectively but also promotes self-sufficiency in meeting the country's energy needs.