Country Facing Threat of An Oil Crisis Due to Oil Tankers’ strike

Staff Report

The country is facing the threat of an oil crisis again due to the strike of oil tankers and the Oil Companies Advisory Council (OCAC) has requested the petroleum division to address the issue of ongoing strike by Oil Transporters.

OCAC in a letter to DG Oil Petroleum division said that on behalf of OCAC Member Companies, it would like to bring to your attention the ongoing strike by oil transporters which has resulted in a significant disruption in operations and distribution of
petroleum products across the country.

On September 18, 2023, a meeting was convened, wherein the representative of OMCs provided critical updates on the challenges and issues they are currently facing at key terminals and depots.

Due to a strike by oil tankers, the supply of oil on three key depots had been affected.

1. Port Qasim, Korangi & Keamari Terminal

OCAC said that the loading of Tank Lorries has been severely affected due to the ongoing strike by the Oil Transporters and their unions.

2. Jaglot and Sihala Depot

It said that Pakistan State Oil (PSO) has reported issues at these depots, which is
further exacerbating the supply chain disruptions in the northern area of Pakistan.

3. Shikarpur Depot:

OCAC said that Shell Pakistan informed that they faced issues at the Shikarpur depot in the
morning. Although the situation is temporarily resolved, there is a risk of a recurrence.

Additionally, similar problems at the Super-Highway Karachi are also being reported.
In light of the above-mentioned issue, we request your immediate intervention in this matter and further request you to intimate the Chief Secretary of the respective provinces to take prompt action to ensure the uninterrupted loading of tank lorries at the depots,” OCAC said.Deregulation of the downstream oil sector: enough talk; more action needed!

This will enable us to maintain a consistent and reliable supply of petroleum products to all regions and avoid any adverse consequences of shortages in the country,” OCAC adds.

Oil Tankers Association in a letter sent to DG Oil referred to the meeting held on 24th August, 2023 under the Chairmanship of Additional Secretary (Policy) Petroleum Division to discuss the share of Road Movement of Mogas after the dualization of White Oil Pipeline (WOPP).

It may be recalled that during the meeting, OTCA requested to consult the Oil
Industry and its members to deliberate on the transport of Mogas through Road/Tank Lorries with minimum share at 30% and a transition timeline of 3 years to achieve movement of 70% of Mogas through the pipeline,” Tankers association said.