ISLAMABAD: There is no emergency-like situation in the country with regards to petrol stocks and currently 10-11 days of fuel supplies are in store, Secretary Petroleum Sikander Sultan Raja said on Wednesday.

Briefing the National Assembly Standing Committee on Energy regarding recent petrol shortage in some parts of central Punjab, Mr Raja informed that some Shell filling stations went dry recently as the company imported less petrol in August and September.

“Shell reduced its supply and used only certified tankers for fuel transport after the Ahmedpur East incident,” Mr Raja said.

He added that High Speed Diesel (HSD) stocks were sufficient for 21 days while adequate supplies of furnace oil are there for 15 days.

The White Oil Pipeline would be completed by December 2018 and will eventually improve fuel supply system upstream, he added.

State Minister for Petroleum Jam Kamal said his ministry and the Oil and Gas regulatory Authority (Ogra) were working to enhance fuel storage capacity in the country, with particular focus on setting up oil depots outside populated areas.

“Besides we have also directed smaller oil marketing companies (OMCs) to increase their outreach by establishing new outlets as this will also reduce dependency on few OMCs and their filing stations,” he added.

Committee Chairman Chaudhary Bilal Ahmad Virk directed Ogra and Petroleum Division to keep an eye on imports of OMCs and ensure that their storage capacity meets the quota allocated to them.

Chairperson Ogra Uzma Adil briefed the committee about the efforts being made to implement quality standards for oil tankers.

It has been decided that in case of any accident, the responsibility will be placed on the relevant OMC, she added.

“The OMCs have also been directed to improve their supply tankers,” she added. Pakistan Tehreek-i-Insaf MNA Shehryar Afridi drew the committee’s attention towards lack of storage depots in Kohat, which was leading to fuel shortage.

This was acknowledged by chairperson Ogra. She added that OMCs had been directed to establish storage in Kohat area for ensuring smooth supply to the northern parts of Khyber Pakhtunkhwa.

“The OMCs have been told to do so otherwise their freight equalisation surcharge will be stopped,” she said.

On the subject of smuggled petrol being sold in the country, the committee decided to invite representatives of Pakistan Customs, FIA and heads of provincial Police departments to discuss the issue.

The Committee unanimously approved the Private Power and Infrastructure Board (Amendment) Bill, 2017 without amendments.

Briefing about the restructuring of Power Division, Chairman Nepra Brig (retired) Tariq Sadozai stressed the regulator was acting with autonomy. “There was criticism against the National Electric Power Regulatory Authority even from official circles. We have been told not to act against any government entity,” he said.

He decried the new draft Nepra Act and highlighted several issues in it, including reduction in experience for Nepra member.

The concept of unified tariff was not correct as the losses of some distribution companies are higher than the others, therefore there is a need to impose surcharge on those making higher losses, he added.

However, Additional Secretary Power Division Sargham Khan said unified tariff will not affect the privatisation process.

The committee deferred discussion on the Regulation of Generation, Transmission and Distribution of Electric Power (Amendment) Bill, 2017 for its next meeting.

Published in Dawn, September 28th, 2017