PM’s answer to fuel crisis–‘let’s talk’

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  • PM summons meeting on fuel shortage today, orders enquiry, vows action against those found responsible
  • CNG stations across Punjab to remain open for next two days, special oil shipments also being arranged; latest to reach by 24th
  • Report states Petroleum Ministry misled economic managers about oil stocks, Finance Ministry absolves itself of responsibility
  • Railways Minister Saad Rafique apologises for petrol crisis, says Pakistan Railways has enough oil reserves to chug on for 14 days
  • Power lead shedding in industries raised from four to 10 hours as paucity of furnace oil raises power deficit to 7,000 MW

As government officials and oil companies continue to play blame game over the prevailing debilitating fuel shortage, Prime Minister Nawaz Sharif has decided to chair meetings on fuel management, focusing on the provision of immediate relief to the people and ensuring measures to bridge the supply-demand gap.

As the as the acute shortage of petrol in many parts of the country took a turn for the worse with reports that the six-day-long crisis will go well in to the next week, the premier ordered an enquiry into the crisis and said that officials responsible will be taken to task.

“Action would even be taken against a minister if he is found to be involved in the prevailing petrol crisis in Punjab,” said the premier during a meeting with Punjab Chief Minister Shahbaz Sharif in Lahore on Sunday.

Earlier, the premier had ordered an enquiry to probe the role of the Petroleum Ministry, Oil and Gas Regulatory Authority (OGRA), Pakistan State Oil (PSO) and private petroleum companies in the acute fuel shortage.

During Sunday’s meeting, Punjab CM Shahbaz said that an enquiry should also be carried out to find out why the crisis hit Punjab.

During the meeting the two leaders also agreed upon effective implementation of National Action Plan and resolution of the political tiff with Pakistan Tehreek-e-Insaf (PTI).

Moreover, PM Sharif cancelled his official engagements scheduled for Monday (today) in order to chair meetings on fuel management. The meeting will focus on the provision of immediate relief to the people and is expected to take important decisions, taking to task those responsible for the current shortage, besides ensuring that measures are taken to bridge the supply-demand gap.

“The prime minister unequivocally said that people should not suffer and every measure will be taken to provide them relief on immediate basis,” read a statement from the PM House on Sunday.

On Saturday, the PM suspended four senior government officials, including some who had consistently been warning the government of the impending crisis.

FOUR MORE DRY DAYS:

In the meanwhile, a high level meeting chaired by Petroleum Minister Shahid Khaqan Abbasi on Sunday has been briefed that petroleum crisis in the country could not end before four days.

The meeting was attended by petroleum advisor, Oil Gas Regulatory Authority (OGRA) chairman, and representatives of oil marketing companies.

The meeting was also briefed that petrol consumption in the country has been increased three times.

Marketing companies could not end four days interval and oil ship will arrive in the country on January 24.

WHO IS TO BLAME?

As oil companies and government officials continued to trade accusations, with neither side willing to accept responsibility for the crunch in petrol supplies in the northern half of the country, both sides agreed that there was an unprecedented surge in demand for petrol after the government decided to reduce prices.

However, economist Shahid Hassan Siddiqui rubbished Petroleum Minister Shahid Khaqan Abbasi’s statement in which he claimed that petrol is short due to skyrocketing demands owing to a price fall.

“The finance secretary has said it is related to the unaddressed issue of circular debt. The crisis is not a simple issue, it is a result of poor governance, incompetence and corruption involving the Finance Ministry, OGRA, PSO — the oil mafia.”

He added that there must be a high-level investigation into the matter to expose who benefited from the scandal. “Firing four officials as a scapegoat is not enough. If it’s an issue of circular debt, then it is the responsibility of the finance minister. If PSO doesn’t have money, then it is the fault of the ministry.”

“What is OGRA’s involvement in this? It must all be determined,” opined the economist.

FINANCE MINISTRY ABSOLVES ITSELF OF RESPONSIBILTY:

On the other hand, a brief statement by the Finance Ministry clarified that the ministry was in no way responsible for the oil crisis, adding that the finance minister has not been summoned by the PM in this respect.

Moreover, Parliamentary Secretary for Finance Rana Muhammad Afzal also confirmed Sunday that an enquiry was underway to fix responsibility for the petrol shortage in Punjab and other parts of the country. He announced that CNG stations would remain open for the next two days across Punjab and special oil shipments have also been arranged to resolve the crisis.

Separately, Railways Minister Saad Rafique Sunday apologised to the masses for the inconvenience caused by the petrol crisis. In a statement, he said that Pakistan Railways has enough oil reserves for 14 days, which will be increased up to 30 days with the passage of time.

PETROLEUM MINISTRY MISLED ECC ON OIL SHORTAGE:

In the meanwhile, it was learnt that the Petroleum Ministry misled economic managers about oil stocks, leading to unprecedented petrol shortage in Punjab.

According to a report on Sunday, the Petroleum Ministry had informed the Economic Coordination Committee (ECC) in its meeting on January 10 that the country’s oil stocks on an average were enough for 18 days of consumption on January 6. The figures were calculated by the ministry’s Oil DG.

However, Punjab started facing petrol shortages soon after the ECC meeting. Within days, the situation worsened and petrol stations ran dry with people scrambling to purchase whatever fuel available at the filling stations.

PSO said efforts to cope with the surge in petrol demand were impeded by Pakistan National Shipping Corporation (PNSC), which supplied vessels for the transport of fuel later than the agreed time. A vessel bringing in 52,000 tons of petrol was to be provided for loading on January 2 to January 4, but it arrived on January 10. Similarly, another vessel, which was due to arrive at the loading port on January 5, reached on January 15.

Officials of the Petroleum Ministry said that besides the rise in demand the default on payments for furnace oil had also impacted PSO’s ability to import white oil products including petrol as the company was unable to open fresh letters of credit (LCs) before the clearance of outstanding payments.

ELECTRICITY GENERATION TAKES A HIT:

Moreover, the current oil crisis has also brought down electricity generation by over 2,000 megawatts (MW), raising the deficit to 7,000MW and cutting supplies to half of the total demand of over 14,000 MW.

More power plants are likely to suspend working in a few days because they are running out of furnace oil, power sector’s managers have warned.

To save domestic consumers, who are already facing around 12- hour power outages, from further suffering, the managers have increased power load shedding for industries from four to 10 hours.

The government has also asked public sector companies to cut their generation to half because of paucity of fuel.

CITIZENS FRUSTRATED:

In the meanwhile, frustrated citizens in Lahore, Faisalabad, Islamabad, Rawalpindi, Gujranwala, Sialkot and Multan spent Sunday queuing up at the handful of petrol pumps that were open, with some saying they had been there overnight without any respite.

“We have been here since 2:30 am last night and still do not have any petrol by Sunday afternoon,” one irked citizen in Lahore said.

“The rate is the same and they are not taking more money than expected but it is taking up to three hours to get petrol,” said another.

“Mian sahab should deliver on the promises made to us.”

In Multan, angry residents perturbed by the government’s incompetence to resolve the crisis protested at Kalma Chowk, shouting anti-government slogans and demanding the resignation of Petroleum Minister Abbasi.

Typically a day of leisure, Sunday was spent by residents of most of the cities holding Gerry cans for up to six hours in a queue for petrol.

The shortage of fuel has affected emergency healthcare services and public transporters as ambulances and buses are idle due to a lack of fuel.

At many pumps, tempers spilled over as worn out and angry citizens scuffled with petrol stations owner as their hours-long wait saw no relief.

Reports said in some cases in Faisalabad, people lined up only to be told that there was no petrol when their turn for filling came.

2 COMMENTS

  1. Lol. This guys a cartoon character. Straught out of a magazine. He’ll appoint a committe, then chair it for a few days/weeks. They’ll hold conferences meetings – dinner at PC or serena! He’s got bo sense of urgency to respond to the needs of the public or the state. One eyed fumbling bafoon!

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