Diesel inventories at 12 of Pakistan’s 20 oil marketing companies have fallen below the required 20-day supply cover as firms delay purchases amid expectations of another change in fuel prices.
Stock levels at several companies have dropped into single digits. My Petroleum has only one day of cover, while Vital holds two days, Echo three days, Taj six days, Euro seven days, and Hascol and Horizon eight days each. GO has nine days, Flow 10 days, Allied 11 days, and ZMOPL and Hi-Tech 16 days each.
Eight OMCs remain above the benchmark, led by Wafi with 31 days of stock. BE has 28 days, PSO 26 days, Parco, Gunvor and Jinn 24 days each, Puma 23 days, Attock 22 days, and Cnergyico, formerly Byco, 21 days.
Industry officials attributed the decline mainly to pricing uncertainty rather than a shortage of diesel in the supply chain. Companies fear that buying expensive stocks now could result in losses if the government lowers HSD prices in the next pricing cycle.
The Oil Companies Advisory Council has raised the issue with the petroleum minister, seeking a more predictable pricing mechanism for both OMCs and refineries.
The situation has been worsened by liquidity problems and delayed price differential claims held up with the Oil and Gas Regulatory Authority. Smaller companies are particularly affected by blocked working capital, financing costs and the risk of carrying high-priced inventories.
Industry representatives warned that continued low stocks, unsettled claims and frequent changes in the pricing formula could put further pressure on fuel supplies. They said expectations of lower prices were discouraging purchases, reducing inventories and increasing supply chain risks.
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