REFERENCE the Dawn editorial ‘Oil commission’ (July 29), which said that the Petroleum Ministry’s March 24 decision asking oil companies to stop the imports of petroleum products was the leading cause of the low supply of petrol and diesel in May and June this year.

The petroleum ministry denies this, as the decision was taken on merit after fully observing the vulnerability of local oil and gas exploration and production companies and refineries in view of Covid-related slump in prices coupled with the lockdown-related fall in the demand of petrol and diesel in Pakistan in March this year.

It is also a matter of record that even during the currency of March 24 letter, some eight cargoes were allowed in view of their being already on high seas. More importantly, the PSO not only kept its supply chain sustained in this period but almost increased its market share from 35 to 54 per cent petrol and from 39 to a whopping 66pc for diesel.

This is indicative of the fact that the so-called disruption in petroleum products was not because of the ministry of petroleum’s March 24 letter but because of hoarding by the OMCs to avoid inventory losses.

However the ministry of petroleum as a serious government entity has always shown restraint in terms of apportioning blame against other entities and has always claimed that since the matter is sub judice in the learned Lahore High Court, let the matter be concluded by the court.

The ministry welcomes the government’s decision regarding the formation of a commission to hold a thorough inquiry into this matter.

Spokesperson

Ministry of Petroleum

Islamabad

Published in Dawn, August 11th, 2020