An unusual situation has been observed leading to a shortage of petrol and diesel at fuel stations across the country adding to the miseries of people. The government has reduced the price of petrol but people still have to endure crushing fuel shortages.
The powerful oil marketing companies (OMCs) are being blamed for creating this artificial shortage of petroleum products. The government failed to keep a check on the oil cartel which is attempting to raise prices by creating shortages and has stopped selling its products.
The petroleum division has said there is sufficient oil in the country which is enough to meet the demand for the next two weeks. It has threatened to take stern against OMCs and dealers who fail to comply including the revocation of their licenses. Other institutions such as OGRA, CCP and provincial governments are also taking action.
There is no check and balance on oil companies who are resorting to such uncompetitive methods having an adverse impact on the lives of people. This artificial shortage is being blamed on six OMCs although most of them have sufficient stock and are expected to receive additional stocks in a couple of days.
People have resorted to panic buying and long queues can be seen at petrol stations. This is unusual at a time when demand for petroleum products has been falling around the world. The global oil industry has suffered amid the coronavirus pandemic as economies are virtually shut and airlines were grounded.
Pakistan now has the 22nd cheapest fuel in the world and the lowest in South Asia. This has been touted by the government that the relief has been passed on to the people.
Although the prices of petroleum may have fallen considerably, there has been no reciprocal effect such as a reduction in prices of essential products, food items or transportation. These sectors are quick to raise prices but are always reluctant to bring a reduction when needed.
We have not seen the benefit of the reduction in fuel prices trickle down to the masses. Oil companies are now attempting to pressurise the government to revise oil prices. It needs to be seen whether actions will be taken against those creating oil shortages or will the government succumb to the oil cartel.
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