KARACHI: Pakistan’s Oil and Gas Regulatory Authority (OGRA) announced on Wednesday it was allowing oil marketing companies to regulate supply to retail outlets as a temporary move to prevent hoarding, as tensions in the Middle East surge following the ongoing military conflict involving Iran.
The decision follows fears of fuel shortage in Pakistan after the Strait of Hormuz, a strategic waterway between Iran and Oman, was shut after escalating hostilities between Tehran and the US and Israel in the Gulf. The conflict has disrupted tanker traffic through one of the world’s most important oil chokepoints.
Pakistan relies heavily on Middle Eastern crude oil, with the majority of its energy imports typically transiting the strait, making any disruption a major risk to domestic fuel supplies.
“To ensure the uninterrupted availability of petroleum products and to discourage hoarding during periods of extreme price volatility, Oil Marketing Companies (OMCs) may temporarily regulate supplies to retail outlets based on their historical sales patterns,” OGRA spokesperson Imran Ghaznavi said in a press release.
“This measure is a standard supply management practice aimed at maintaining stability in the distribution system.”
