ISLAMABAD, June 9: The strike by the CNG sector in Punjab and Khyber Pakhtunkhwa has led to a spike in petrol consumption by around 40 per cent in four days, compelling oil marketing companies to fall back upon their reserves to meet the steep rise in demand.

The situation appears to have worsened after oil tanker owners and parties in the coalition government extended support to the CNG Association.

With no sign of negotiations between the All Pakistan CNG Association (APCNGA) and the petroleum ministry over the issue of an exorbitant increase in the Gas Infrastructure Development Cess for CNG in the finance bill for 2012-13, panic buying of petrol has shot up in the two provinces.

While some pumps in Punjab and Khyber Pakhtunkhwa are already running dry of petrol, leading oil marketing companies have resorted to the use of reserves in order to meet the sudden jump in demand for oil.

“The average daily petrol demand in the country is 7,000-8,000 tons, but it has crossed the 10,000-ton mark because the major consumption area is Punjab, while Khyber Pakhtunkhwa too boasts of significant inter-city travel,” said an official of PSO, the largest oil marketing company of the country.

“The PSO has issued a special tender for purchase of 35,000 tons, which is likely to materialise in 10 days,” he added.

Up to 3,500 tons of petrol is produced daily in the country and an equal quantity is imported. However, with the surge in demand, the companies have already consumed reserves for three days.

“Normally the country has reserves for seven to eight days with all oil companies and the additional demand is being met from it,” said another oil company official.

However, the officials appear confident that they will be able to meet the spurt in demand for petrol.

A tanker with 35,000 tons of petrol, ordered by the PSO, is expected to dock at Karachi port by Sunday night.

But the situation appears to be changing as the All Pakistan Oil Tankers Owners Association extended support on Saturday to the All Pakistan CNG Association and announced that its members would go on an indefinite strike from Monday if the government stuck to its “adamant attitude”.

“We support the demand of All Pakistan CNG Association because the proposed increase in the cess is a tool to crush the CNG sector,” the tankers’ association’s chairman, Mir Mohammad Yusuf Shahwani, said in a statement.

Talking to Dawn, he said the demands of the CNG association were justified as the exorbitant increase in CNG rates would feed inflation.

“The rulers do not understand the importance of cheap fuel.”

Mr Shahwani, who claims the members of his association have around 32,000 tankers, said: “If they do not withdraw the high amount of cess imposed only on CNG, we will stop oil supply, including to airports and power generation companies, from Monday.”

The PML-Q and the MQM also came out in support for the CNG sector.