Recent Petrol crises in Pakistan

1. PETROLEUM CRISES IN PAKISTAN
Introduction:
In order to give the push to an economy the country must have efficient management of the fuels
and other energies which are imperatives to keep the economy rolling But if there is any
mismanagement or inefficient decisions are taken the results have to be borne by the whole
nations. Same happened in Pakistan recently in the mid of January when the Pakistan mostly
Punjab provinces went out of oil because of mismanagement or not management at all
consequently the whole nations had to come out on the roads in order to get famine fuels for their
daily life and for their vehicles.
Body of the Essay: (Causes and Effects)
People of Pakistan primarily people of Central Punjab and Islamabad region, went through
disastrous situation regarding petrol famine. Millions of people from the most heavily populated
and alleged most prosperous province of Punjab came across never thought of circumstances of
not able to basic commodity to keep running their life vehicle called petrol.
Crisis prevailed abruptly in the middle of January, 2015, when in first 2 days people came across
unavailability of petrol in some petrol pumps, but as the days passed by the shortage shaped as
the lack of procurement completely. That’s when noise started echoing of countless people from
the big cities of Punjab including Provincial Capital Lahore and Faisalabad, Gujranwala, Multan
and also heard in Countries Capital Islamabad.
Initially it was close to impossible for people to find a petrol station – where the petrol is
available; secondly if somehow people found one, the never ending queues of 4 wheelers and
two wheelers broke the hope of many straight away regarding the possibility of getting petrol
from there. But as Pakistani people is known for their resilience, most of them stood still in the
long wait for their turn to get some drops of fuel to reach offices & business next day and
importantly their homes that day.
Ground situation was so worse that because of the numerous incidents of verbal fights turning
into physical on most petrol stations, owner of petrol stations called the Police for controlling the
crowd. State of affairs for getting petrol on 17th & 18th January, 2015 was the most terrible, when
first time in the history of the country, whole families including children’s and females were also
seen whole weekend, standing in the long queues holding cans in their hands to obtain petrol.

2. But as per Minister of Petroleum Shahid Khaqan Abbasi statement, who apologized from the
Government from the people of Pakistan and also offered his voluntary resignation upon found
guilty for this debacle. He innocently called it mismanagement and extensive increase in demand
of petrol in the first week of January, 2015 for this shortage, during a press conference in
Islamabad last week.
The inquiry report available also accused what it described as the black sheep in the oil industry
– oil marketing companies (OMCs) and dealers – of being involved in hoarding and black
marketing of petrol. It suggested diversion of at least 50 per cent power sector bills and tariff
differential subsidy to the PSO to avoid similar crisis in future. It also accused the Oil
Companies Advisory Council (OCAC) of having been negligent.
Conclusion and Solutions
Action needs to be taken against the chairman and relevant member of Ogra and the PNSC
management should also be reprimanded; cash management of white oil and black oil shall
immediately be segregated and maintained independently to avoid such instances in future and
the PSO must secure more banking lines, both funded and unfunded, and explore the possibilities
of raising funding through innovative products, including listed capital market instruments, to
meet its working capital requirements assuming six months of delayed payments from the water
and power ministry.
Additional storage facilities should be built across the country to preserve at least 300,000 tons to
meet the benchmark of a minimum 20-day requirement. The private sector should be invited to
build these facilities and further lease them out on a long-term basis to the local OMCs.
As the Petroleum’s industry is the backbone of economy without its prosper future a country
cannot have any prosperity by taken this all above argued prerequisites steps country can protect
for future famine situations in this industry.