Diesel stocks at OMCs fall below 20-day cover

According to The Express Tribune, high-speed diesel (HSD) inventories at several oil marketing companies have dropped below the minimum 20-day requirement. Data shows 12 of the 20 OMCs are holding less than that benchmark, and some have stock cover in single digits. Companies are reportedly holding back purchases because they expect petroleum prices to change again.

Industry officials say the shortfall stems more from pricing uncertainty than from a lack of diesel in the supply chain. Firms are wary of stockpiling because a later government price cut would leave them with inventory losses. The Oil Companies Advisory Council (OCAC) has written to the petroleum minister seeking a more predictable pricing framework.

Liquidity pressure is adding to the strain, as delayed settlement of price differential claims with Ogra has tied up working capital needed for buying stock. Industry representatives cautioned that low stocks, cash constraints and frequent pricing changes could put pressure on fuel supply if the problem persists. Among the eight OMCs above the benchmark, PSO held 26 days of cover and Cnergyico (Byco) held 21 days.