You drive into a petrol station and find long queues or worse still, empty pumps. Pakistan has not yet experienced a nationwide fuel crisis, but the warning signs are becoming too serious to ignore, say the country’s oil industry.

The Oil Companies Advisory Council (OCAC) has called for urgent action from the federal government as delays in fuel imports and mounting financial pressures threaten to bring localised petrol shortages in the coming days.

Pakistan now has roughly 370,000 metric tonnes of petrol in stock, enough to cover about 15 days of national demand, the council said. But industry officials say the real supply to consumers is lower, as imported fuel cargoes are still stuck in customs clearance under the WEBOC system.

The timing couldn’t be more urgent. Three shipments of petrol are due between July 15 and July 17 and the OCAC says any further delays in clearing these cargoes could cause disruptions to fuel supplies especially in upcountry areas where logistics are already more difficult.

A decision in June not to approve a planned Pakistan State Oil import cargo has reduced the country's fuel cushion at a time when international oil prices are continuing to climb, aggravating the situation.

Adding to the pressure, demand is rising just as supplies tighten as consumers and fuel dealers reportedly increase purchases in anticipation of another price hike.

The industry is also carrying an outstanding amount of Rs. 66.7 billion on account of unpaid Price Differential Claims, which is hampering the ability of the oil marketing companies to finance fresh imports. With global crude prices rising, companies say it is becoming increasingly difficult to secure the future fuel shipments.

The OCAC has urged the government to release pending payments immediately, speed up customs clearance and facilitate uninterrupted import of fuel. Industry officials say some parts of Pakistan could soon be hit with fuel shortages if quick action is not taken, adding to pressure on supply chains and public confidence.

Credit: Independent News Pakistan (INP)