KARACHI: Pakistan’s Oil and Gas Regulatory Authority (OGRA) on Wednesday sought an explanation from three oil marketing companies for failing to maintain their reserves as consumers continued to suffer due to a shortage of gasoline across the country after the government decided to ease lockdown restrictions.
“We have taken notice of the situation and engaged a third party to probe the situation. We have also issued show cause notices wherever we felt the stocks were not properly available,” OGRA’s senior executive director Imran Ghaznavi told Arab News, adding: “We have issued notices to Shell, Total-Parco, and Attock Petroleum.”
According to a statement released by the Ministry of Finance, the country’s Economic Coordination Committee (ECC) also discussed the shortage of petrol in some cities on Wednesday and instructed the Ministry of Energy, Competition Commission of Pakistan and OGRA to ensure that the requisite stocks were maintained by oil marketing companies and the supply to the fuel stations across the country remained regular and intact throughout the month.
The ECC chairman, Dr. Abdul Hafeez Shaikh, took a stern view of the reported petrol shortage, directing all the relevant government institutions to immediately let him know if the situation worsened any further.
Pakistan’s petroleum consumers suffered this week as many petrol station stopped supplying fuel while others faced panic buying and long queues. Retailers say about 40 percent of the supply was disrupted after the prices of fuel were slashed by the government.
“Around 40 percent petrol stations are not supplying fuel to the consumers and this situation is persisting across the country,” Sameer Najmul Hasan, chairman of All Pakistan Petrol Retailers’ Association, told Arab News.
The situation emerged when the country’s oil marketing companies failed to maintain their required stocks for 20 days under a local law.
Retailers say the demand for petrol and diesel surged after the government announced to relax the COVID-19 lockdown and allowed public transportation to resume after almost two months of suspension.
“The oil marketing companies mostly keep stocks of petrol and diesel through imports and keep inventories toward the lower side. As the lockdown was eased and public transportation was resumed, the demand for fuel surged in the country,” Hasan noted.
Goods transporters said they were also facing problem due to the shortage of diesel, warning that the situation could have larger implications for the country’s economy if it was not duly addressed.
“We are trying to manage at present, mostly by relying on stations owned and operated by small companies, but the surge in demand is depleting the stocks and the situation is getting out of hand,” Rana Aslam, president of Karachi Goods Carrier, told Arab News.
Transporters warn that the supply of essential goods across the country will also be suspended if the situation is not properly handled.
“When oil prices are increased, the orders are immediately implemented,” Aslam added. “But when these prices are dropped, people are deprived of the benefits. The situation may also hamper the supply of essential items across the country amid the COVID-19 pandemic.”
The fuel shortage emerged despite the assurances of the petroleum division that the country had sufficient stocks of gasoline to meet the domestic requirement
OGRA officials said the oil marketing companies were legally bound to respond to the government’s call to maintain sufficient stocks of petroleum products to avoid any emergency situation. The matter is also expected to be taken up in a high level meeting on Thursday.
“A meeting is taking place tomorrow at the petroleum division and the matter will be taken up in that meeting,” Ghaznavi informed, adding: “The companies are legally obliged to overcome this shortage forthwith.”
Pakistan’s average monthly consumption of petrol before the coronavirus pandemic remained between 500,000 metric tons and 600,000 metric tons. However, the level of consumption and demand declined due to the COVID-19 outbreak. The imports of petroleum products also declined by 20 percent to $9.5 billion during July-April 2019-20 mainly due to virus-related lockdown.
Pakistan’s annual consumption of petroleum was around 19.35 million metric tons in FY19. Around 42 percent of the country’s demand was met through imported products while the remaining 58 percent was locally refined, according to the country’s credit rating agency, PACRA.
Pakistan seeks explanation from oil marketing companies amid looming fuel crisis
https://arab.news/6bgs9
Pakistan seeks explanation from oil marketing companies amid looming fuel crisis
- Shell Pakistan, Total-Parco, and Attock Petroleum given show cause notices on failing to maintain stocks — OGRA
- Retailers say about 40 percent fuel supply was disrupted after the government slashed prices of petroleum products
Arif Habib-led group plans to buy remaining 25 percent stakes in Pakistan International Airlines
- Consortium bought 75 percent stake in Pakistan International Airlines in December 2025 for $482 million
- Group will have to pay government $161 million by April 2027 for 25 percent stakes, says Arif Habib Ltd. CEO
ISLAMABAD: The Pakistani consortium led by Arif Habib Ltd. which bought a 75 percent stake in the Pakistan International Airlines (PIA) plans to secure full control of the airline, a senior official of the firm confirmed on Sunday.
In December 2025, the consortium headed by Arif Habib Group secured a 75 percent stake in the PIA for Rs135 billion ($482 million) after several rounds of bidding, valuing the airline at Rs180 billion ($643 million). Pakistan had previously attempted to reform the debt-ridden airline, which had accumulated more than $2.8 billion in financial losses over the years.
Arif Habib Ltd. CEO Shahid Habib told Arab News that since the PIA’s privatization documents were signed in January, the group will formally take over the airline at the end of April. He said as per the by-laws, the group will have to notify the government whether it intends to buy the remaining 25 percent stake in the airline or “leave it with the government.”
“At present, their [Arif Habib-led group’s] stated position is that they intend to acquire the 25 percent from the government,” Habib said.
He said once the group conveys its decision to buy the remaining 25 percent stakes in the airline, it will have 12 months to complete the payment.
“This means that from April to the following April [in 2027], they must pay the Government of Pakistan Rs45 billion [$161 million] more for the additional stake,” Habib said.
Habib said beyond ownership, the group intends to improve service for customers. This would include strengthening overall safety and security standards, enhancing staff performance and upgrading the airline’s ticketing system.
He said the group intends to increase the frequency of flights on commercially viable routes.
“For example, routes that currently operate only two flights every two weeks could be expanded to as many as six flights per week,” Habib said.
“This would significantly improve passenger convenience and availability.”
Habib said currently, PIA has 18 operational aircraft, adding that some of them require capital expenditure (CAPEX) for upgrades and improvements. He said six to seven aircraft could be made operational with additional CAPEX.
“The medium-term goal is to expand the fleet from 18 to 38 aircraft over the coming years,” Habib said.
“While the exact timeline has not been specified, the intention is to achieve this within a defined multi-year framework.”
Habib shared leasing brand new aircraft would require time, adding that current delivery slots that are being offered for them are for 2030, 2031 and 2032.
He said that as an interim solution, relatively newer aircraft — around eight to ten years old — can be acquired for the airline.
“If orders are placed now, Boeing or comparable models, as well as Airbus aircraft in the seven-to-ten-year range, could be secured to stabilize and expand short-term operations,” he said.
Once considered among Asia’s leading airlines, PIA struggled with chronic mismanagement, political interference, overstaffing, mounting debt and operational issues that led to a 2020 ban on flights to the European Union, UK and the US after a pilot licensing scandal.
The EU and the UK lifted the bans, providing fresh momentum to the carrier.
