The federal government has started an investigation into the alleged hoarding of petroleum products by oil marketing companies (OMCs) after panic buying increased due to the ongoing regional conflict involving Iran.
Prime Minister Shehbaz Sharif has directed the Federal Investigation Agency (FIA) to examine certain OMCs along with officials of the Oil and Gas Regulatory Authority (OGRA) over suspicions of stockpiling fuel supplies, which may have caused shortages and increased price pressure, according to reports.
Initial findings suggest that at least one oil company may have intentionally withheld fuel stock to create artificial shortages and support higher prices. FIA Karachi has also recorded statements from a senior official of the Directorate General of Oil, who indicated that some “unscrupulous players” may have manipulated the market.
The investigation began after panic buying spread across the country following the outbreak of war involving Iran. In response, the government raised petrol and high-speed diesel prices on March 7 to maintain uninterrupted fuel supply.
OGRA had earlier highlighted possible hoarding in an April 16 letter sent to the government, seeking approval for a Rs128 billion mechanism to settle price differential claims (PDC) of OMCs. The regulator stated that any company found involved in hoarding would be excluded from receiving these payments.
According to reports, the FIA is making quick progress in the inquiry and is expected to submit its findings to the prime minister soon. The report could influence future compensation decisions and possible action against companies found responsible for disrupting fuel supply.
