The Oil and Gas Regulatory Authority (Ogra) and Pakistan State Oil (PSO) on Monday came under fire for insufficient and lethargic online integration and automation of stock and supply position of oil products for improved visibility and monitoring.
Subsequently, the government decided to activate law enforcement and investigation agencies for improved monitoring of retail petroleum outlets and to check hoarding.
The development came during a meeting of the cabinet committee, constituted by Prime Minister Shehbaz Sharif to monitor petroleum prices in the wake of the emerging situation.
During the meeting, chaired by Finance Minister Muhammad Aurangzeb, members raised questions over certain loopholes in petroleum pricing, particularly in the diesel rate build-up.
Informed sources said Climate Change Minister Dr Musadik Malik, who previously held the positions of energy and petroleum minister, suspected that the oil industry had apparently been allowed a windfall and proactive corrective measures were not taken as prices went through the roof.
Both Malik and the finance minister expressed displeasure that even Pakistan State Oil (PSO) had not been able to integrate its retail outlets and depots despite being a public sector company.
Ogra was also on the receiving end of their ire for moving too slowly on data integration despite being officially ordered more than three weeks ago, the sources added.
In such a situation, market manipulators appeared to have taken advantage and resorted to aggressive hoarding in the midst of continuously rising prices at home and abroad. It was reported that PSO’s retail integration was close to 60 per cent but the situation was even poorer in the private sector players in the supply chain.
This was reinforced in an official statement issued by the Ministry of Finance after the meeting.
“To reinforce implementation, it was decided that joint teams comprising representatives of the Petroleum Division, Ogra, the Federal Investigation Agency (FIA) and PSO will be deployed to selected PSO petrol pumps in Islamabad to support timely data entry, improve stock transparency, and ensure operational compliance,” the handout said.
The committee underscored the importance of institutionalising such mechanisms to strengthen oversight, enhance accountability, and promote consistency in reporting practices across the retail network, the statement added.
It further said that the committee placed particular emphasis on strengthening monitoring and data-driven oversight through the digital dashboard launched by Ogra to provide real-time visibility of stock levels, sales, and supply conditions from depots to retail outlets.
The dashboard is expected to serve as a central tool for tracking key indicators, including sales, inventory, and demand fluctuations, enabling timely identification of supply gaps and informed decision-making, the statement said.
According to sources, the committee, while acknowledging the progress, noted that data reporting from retail outlets remained below expectations, particularly given the scale of over 12,000 petrol pumps nationwide, and stressed the need to fully operationalise the system to realise its intended benefits.
Meanwhile, according to the official statement, Aurangzeb directed timely data integration and wanted all stakeholders to ensure prompt and accurate sharing of information to support effective utilisation of the dashboard for decision-making.
Ogra was directed to ensure compliance with data reporting requirements, accelerate digitisation efforts across the supply chain, and maintain close coordination with oil marketing companies (OMCs) and other relevant stakeholders to support seamless implementation of the system.
“In this context, PSO will further enhance visibility across its retail network and strengthen reporting coverage on a priority basis,” the statement said.
It further said that the meeting had been called after recent price adjustments to review the petroleum supply situation and market conditions and focused on ensuring supply continuity, maintaining market discipline, and strengthening monitoring mechanisms across the supply chain.
The meeting took a comprehensive review of petroleum stock positions, import plans, and refinery operations. The panel was informed that the overall supply position remained stable, with diesel stocks providing approximately 25 days of cover, petrol availability sufficient to meet current demand and crude oil stocks at around 12 days of cover, supported by incoming cargoes and scheduled imports.
The Petroleum Division reported that import arrangements for the coming weeks were on track through a combination of commercial procurement and government-to-government engagements, while refineries continued to operate at optimal levels to maintain throughput and ensure efficient conversion of crude into refined products.
The meeting noted the critical importance of a reliable energy supply in supporting key sectors such as agriculture, fertiliser production, transportation, and industry, underscoring its role in sustaining economic activity and maintaining price stability. The committee emphasised continued vigilance across the supply chain to prevent hoarding, speculative behaviour and any disruption in product availability, the statement said.
The meeting reiterated its directions for closely monitoring demand patterns, including localised variations in consumption to support balanced supply management. It directed immediate steps by the Ogra to discourage unauthorised storage and address market irregularities within the regulatory framework.
The committee also reviewed the gas supply situation and discussed options for managing gas availability for domestic consumers and its allocation between the domestic and power sectors, through rationing and optimal utilisation.
Informed sources said more than 40 million cubic feet of gas to Pak-Arab Fertiliser has been disconnected by the relevant gas company under duress.
“Members emphasised a balanced, data-driven approach to ensure efficient utilisation of resources, particularly in view of seasonal demand and increasing reliance on LPG,” the official statement said.