The Oil and Gas Regulatory Authority (Ogra) on Tuesday rubbished reports of a fuel shortage in the country, saying the situation is “fully under control”.

Earlier, media reports claimed that oil companies warned of a nationwide fuel shortage due to new taxation requirements by the Sindh government. They added that the new regulations added to delays in clearing fuel shipments at ports and also added costs that could not be passed on to consumers.

The Oil Marketing Association of Pakistan also approached the federal energy ministry over the matter and urged the government to intervene.

“There is no situation of fuel shortage in the country. Some clearance delays were experienced earlier with imported petroleum products; however, the situation is now fully under control,” said Ogra in a statement released today.

It added that Pakistan State Oil’s diesel vessel and a petrol vessel of Wafi Energy, the majority shareholder of Shell Pakistan Ltd (SPL), were also cleared today.

“Fuel supply operations across the country remain normal, and business continues as usual,” added the statement from the Ogra spokesperson.

The government had marginally reduced the prices of high-speed diesel (HSD) and petrol for the next fortnight last week.

The ex-depot price of HSD was reduced by Rs1.39 per litre (0.5 per cent) to Rs275.41 from Rs276.81. HSD is the main fuel for the transport sector and is considered inflationary as it is widely used in heavy vehicles, trains, and agricultural machinery such as tractors, tube-wells and threshers. It also affects the prices of vegetables and other essential goods. However, transporters rarely pass on the benefit of lower prices to consumers.

The ex-depot price of petrol was decreased by Rs5.66 to Rs263.02 per litre from Rs268.68, showing a reduction of 2.11pc. Petrol is mostly consumed by private vehicles, small cars, motorcycles, and rickshaws, directly impacting the budgets of middle and lower-middle classes.

The government is currently collecting about Rs99 per litre on both petrol and diesel. Although general sales tax remains at zero on all petroleum products, the government is charging Rs79.50 per litre on diesel and Rs80.52 on petrol and high-octane products under the petroleum levy and climate support levy. This includes Rs2.50 per litre under the climate support levy.

In addition, around Rs17-18 per litre in customs duty is being collected on both petrol and HSD, regardless of whether they are locally produced or imported. Another Rs17 per litre goes to oil companies and dealers as distribution and sales margins.

Petrol and HSD are the main revenue sources, with monthly sales of around 700,000-800,000 tonnes each, compared to only about 10,000 tonnes of kerosene.

The government collected about Rs1.161 trillion through the petroleum levy in FY2025 and expects this to increase by around 27pc to Rs1.470tr during the current fiscal year.