The letter stated that "complaints are being received in this office and also through print and electronic media regarding over-charging and stocks un-availability at the Oil Marketing Companies retails outlets/petrol pumps after a decrease in petrol prices with effect from December 1, 2014. Moreover it is apprehended that POL prices will be reduced with effect from January 1, 2015".
Petrol prices in the country began to slide from 1st March 2014 till 1st January 2015 - from Rs 110.03 per litre to Rs 78.28 per litre. The decline from 1 October to 1 January was very steep - from Rs 103.62 to Rs 78.28. OMCs attribute a rise of 28-33 percent in demand as a consequence of this price fall.
According to data available with this correspondent the total demand of petrol from 1 to 21 January 2015 was 311,838 metric tons while in January 2014 total demand was 302,176 metric tons. The PSO accounted for actual sale of 142,067 with a total demand at 160,000 metric tons while OMCs accounted for total sale of 169,771 with total demand of 381640 metric tons for the period from 1st January to 21st January 2015.
Shell Pakistan Limited (SPL) sold 65,562 metric tons against a demand of 73,000 metric tons, Caltex sold 29,571 metric tons of petrol against a demand of 37,000 metric tons, Attock Petroleum's share in total sales was 22,285 metric tons against a demand of 28,000 metric tons, Total Parco Pakistan Limited's share in petrol sale was 24,639 metric tons against a demand of 33,000 metric tons and Hascol's share in petrol sales remained at 17,895 metric tons against a demand of 22,000 metric tons.
Total shortfall between demand and supply was 63199 metric tons which caused supply shortages and as panic further fuelled demand. In addition, Parco refinery shutdown due to technical failure for five days (10th to 15th January 2015) further exacerbated the shortage.
However, to complicate matters further a letter dated 30 December from PSO to Ministry of Petroleum and Natural Resources and Water and Power with a copy to Ministry of finance reported that with Rs 198 billion receivables minus penalties of Rs 250 million for October to December 2014, $1.8 million for demurrages and suppliers credit of $6.4 million "PSO is left with no option but to freeze its business with the power sector once current supplies have been exhausted." Current supplies, according to minutes of the ECC meeting, were for 18 days on 6 January and questions are being asked how a two-day shortage of stocks resulted in such a massive disruption in Punjab.