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AsianOil SOUTH ASIA AsianOil
Pakistan to charge OMC
executives over fuel shortages
POLICY PAKISTAN’S investigation into allegations that the
country’s oil marketing companies (OMCs) have
orchestrated a national shortage of gasoline could
lead to the prosecution of two company heads.
The fuel crisis committee is seeking to file
a police complaint against the heads of Hascol
Petroleum and Gas and Oil Pakistan, the Express
Tribune reported on June 10. The local daily
cited first information reports (FIRs) as saying The Express Tribune quoted the Oil Compa-
the committee had received complaints against nies Advisory Council (OCAC) as saying: “For
the two companies over fual hoarding. the month of June, a total of around 850,000
Pakistani Prime Minister Imran Khan tonnes of [gasoline] is being supplied from local
ordered the Oil and Gas Regulatory Authority refineries and imports to the distribution and
(OGRA) and the Energy Ministry’s Petroleum retail network of the country.”
Division on June 9 to inspect OMCs to ensure The OCAC siad supplies in June 2019 reached
they have the 21 days’ worth of fuel that is stipu- 650,000 tonnes.
lated in their operator’s licence. The news of the crackdown comes in the
The two bodies were also directed to form wake of reports that the government had agreed
inspection teams that included officials from the “in principle to completely deregulate” pricing
Federal Investigation Agency (FIA) as well as and marketing of gasoline.
local government. Local news outlet Dawn reported on June
“The teams shall inspect all petrol depots/stor- 8 that an official record of the petroleum divi-
age. They have all authority to enter any site,” the sion’s talks with OMCs showed that the ministry
federal cabinet said in a statement. “Anyone found had decided to link gasoline prices to the S&P
involved in hoarding shall face full force of law, Global Platts Oilgram Price Report of the previ-
including arrest and forced release of such stores.” ous month. This would replace the government’s
Those companies found not to be meeting current method of setting prices based on the
mandatory stock requirements face disciplinary price state-owned Pakistan State Oil (PSO) pays
measures, including fines or the suspension or for its crude imports.
cancellation of their licence. The Express Tribune reported on May 21 that
The government has urged people not to refiners had warned the government they were
panic-buy fuel, saying on June 8 that sup- facing PKR31bn ($189.2mn) worth of inventory
plies are higher now than they were this losses in March and April and that cheaper imports
time last year. by PSO could force them to cut fuel production.
SOUTHEAST ASIA
Sarawak warns Petronas
with further legal action
POLICY MALAYSIA’S Sarawak State has fired a warn- company’s complete authority over Malaysia’s oil
ing shot across the bow of national oil company and gas fields.
(NOC) Petronas, saying that it would resume The chairman of a state assembly consultative
legal action unless the two sides come to a final committee, Amar Mohd Asfia Awang Nassar, has
understanding over unpaid taxes. denied that the joint statement is a “formal agree-
The NOC and the local government released ment”, state news agency Bernama reported on
a joint announcement on May 8 saying they had June 10. The official added that further negotiations
agreed to drop their legal battle in return for the were needed to achieve a final deal, otherwise the
company paying a MYR2bn ($470.9mn) out- government’s lawsuit would continue.
standing petroleum product state sales tax (SST) Sarawak authorities took the company to
bill. The government also agreed to recognise the court in November 2019 after it failed to respond
P6 www. NEWSBASE .com Week 23 11•June•2020
