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Fuel, power shortage looms as oil stocks plummet

ghazi52

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Fuel, power shortage looms as oil stocks plummet
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ISLAMABAD: Filling stations and power plants have started drying up as petrol and furnace oil stocks plummeted to dangerous level mainly because of chronic circular debt coupled with falling oil prices, affecting private transport and increasing load-shedding.

The country’s total petrol stocks have dropped below 60,000 tonnes, which can only meet requirement for less than four days, while furnace oil stocks stand at 40,000 tonnes, which cannot go beyond two days of consumption if power plants are run at optimum level.

Informed sources said the fuel supply to power stations had been scaled down to 10,000 tonnes a day to stretch reduced power generation to four days but fresh supplies would not be available until Jan 25 as next fuel import was due in the last week of this month.

Consequently, power load-shedding has increased to more than 12 hours in major cities like Rawalpindi, Lahore and Multan. The oil marketing companies, including Pakistan State Oil, have also started petrol rationing but queues have started to appear due to panic buying, they said.

Running at optimum level, power plants can consume 32,000 tonnes a day, but due to financing problems they are normally averaged at 15,000-20,000 tonnes.

Speaking to Dawn, Petroleum Minister Shahid Khaqan Abbasi downplayed the situation, saying there were some issues with PSO, but they have now been resolved and petrol supply was getting normal. The situation at other marketing companies was also not as bad, he said.

Regarding furnace oil and power shortfall, he said it was a usual thing as fuel could not be supplied without payments. He said he was advocating minimum utilisation of furnace oil for power generation because it was not a wise approach to generate expensive power.

The maximum fuel supply in the recent past to power sector stood at 24,000 tonnes on the eve of Eid, and had since come down to 15,000 tonnes, he said.

He said the situation would improve in about a month, followed by further improvement when imported LNG was supplied to the power sector after March this year. He agreed that the government had to divert gas supply from the industrial sector a couple of days ago to meet higher demand in the domestic sector.

He said consumers, oil companies and dealers also postponed purchasing the product from the outlets in the last few days of December anticipating price reduction, and this led to abnormal demand and sale in the first week of January. In addition, the demand for petrol in Punjab had also gone up due to non-availability of CNG.

Fuel, power shortage looms as oil stocks plummet - Newspaper - DAWN.COM
 
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Speaking to Dawn, Petroleum Minister Shahid Khaqan Abbasi downplayed the situation, saying there were some issues with PSO, but they have now been resolved and petrol supply was getting normal. The situation at other marketing companies was also not as bad, he said.
there should be criminal proceedings brought against this government for being so neglectful of the needs of the people. How can he lie so openly and why is he not held accountable? The people of Pakistan need to speak out without care for political affiliations.

The country’s total petrol stocks have dropped below 60,000 tonnes, which can only meet requirement for less than four days, while furnace oil stocks stand at 40,000 tonnes, which cannot go beyond two days of consumption if power plants are run at optimum level.
so we have 5 days of crazy load shedding after which we do not know if we get electricity for the next 5.
 
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Hi,
Where are the champions of democracy ?? and who insisted that we shoudl carry on with this pathetic method until it fixes itself
 
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In the end people will suffer......
Govt. seems untouched ...................
 
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Low oil price shall be in fact a boast for power increase and not shortage? What kind of logic is that? Those responsible for this crisis shall be hanged.

Yeah, WTH Pakistan? Lower prices should mean you could afford MORE oil, and thus more power.

hehe, filled my gas tank this morning for $2.27 a gallon. I certainly got more for less.
 
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Yeah, WTH Pakistan? Lower prices should mean you could afford MORE oil, and thus more power.
As Eric Foreman (Omar Epps) from that drama House would say,
"He's screwed! We clot his blood he dies. We thin it, he dies!"


Ridiculous!

hehe, filled my gas tank this morning for $2.27 a gallon. I certainly got more for less.
Good going ,eh? :enjoy:
 
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Fantastic. Prices are dropping around the world due to OVERSUPPLY of oil. Yet there is a shortage in Pakistan.

Someone is saving the oil for when the prices rebound. Go and find them and prosecute them.
 
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there should be criminal proceedings brought against this government for being so neglectful of the needs of the people. How can he lie so openly and why is he not held accountable? The people of Pakistan need to speak out without care for political affiliations.
The people of Pakistan need to pay their bills as well. The OMCs are cutting down oil imports to get benifit from falling oil prices. For them providing oil to IPPs is a loss trade because they are being paid back in full. Holding oil reserves in falling prices results in inventory losses which the OMCs are now trying to avoid.

Low oil price shall be in fact a boast for power increase and not shortage? What kind of logic is that? Those responsible for this crisis shall be hanged.
Furnace production cost is now almost at breakeven with the selling rate of the govt, so new circular debt is not being produced. However, the OMCs and Refinaries which handle the crude import are taking inventory losses while building oil reserves in falling prices. The power generators and end users don't share this cost because they buy at the market rate from these refineries and OMCs. Unless this loss is not shared or afforded by the end users and/or the government. OMCs and Refineries wont have any incentive to build the fuel reserves.
 
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The people of Pakistan need to pay their bills as well. The OMCs are cutting down oil imports to get benifit from falling oil prices. For them providing oil to IPPs is a loss trade because they are being paid back in full. Holding oil reserves in falling prices results in inventory losses which the OMCs are now trying to avoid.
The people are paying their bills it is mostly Government institutions and industrial setups which are not paying
 
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Low oil price shall be in fact a boast for power increase and not shortage? What kind of logic is that? Those responsible for this crisis shall be hanged.
Indeed that's what needs to be done and not just in this case. We should start hanging the accountable where ever we found neglect let it be power crises or security. For some reason our nation doesn't take their job/responsibility seriously :sick:
 
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Looks like Pakistan hasn't learned from it's mistakes.

In case of war, A week of naval blockade and Pakistan would be without petrol..
 
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Looks like Pakistan hasn't learned from it's mistakes.

In case of war, A week of naval blockade and Pakistan would be without petrol..

Pakistan already produce 20%-25% of its consumption of crude oil from its own reserve,Which is set to rise to 40% in the years to come.We already have 100% of our domestic natural gas in use
 
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@SBD-3 your non-valuable opinion required here. If you read the report it mentions upto 12 hours loadshedding in big cities while you claimed that there isn't any loadshedding in Karachi and 6 hours loadshedding in Punjab :D
 
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