ISLAMABAD, Dec 24: The countrywide shortage of petroleum products has worsened, particularly in the NWFP where it is reported to be affecting the daily life and anti-terror efforts.

Informed sources told Dawn that the provincial government has been complaining to the federal government about the shortage of POL products for the past two weeks but there was little the centre could do in view of the limited commercial stocks and depletion of the strategic stocks to the rock bottom level.

“As already intimated, serious shortage of diesel/petrol has been reported from all over the province, which has further deteriorated the situation about POL supplies (sic). This has resulted in an increasing law and order situation in some of the districts of the province,” said a telegraphic communication dispatched by the provincial government to the president, caretaker prime minister, ministry of interior and the general headquarters.

The provincial government has warned that the situation may “further aggravate which has a sure potential of resulting into a serious law and order situation” if immediate remedial measures are not taken. “Additionally, the impending oil crisis may also cause serious disruption in the coming elections,” says the ‘most immediate’ fax message.

In a related move, the ministry of petroleum has been instructed at the highest level to prevail upon the oil marketing companies to replenish defence stocks immediately and then meet commercial needs in the market, said the sources, adding it was totally beyond expectation that stocks kept for emergency situations had been consumed despite advance payments made by the ministry of defence.

The sources said the entire diesel import orders placed for December were 230,000 tonnes. Almost one third of this would need to be diverted to build strategic stocks, resulting in a volatile situation in the market.

Those dealing with the oil products and supplies said there were also reports of smuggling of diesel in areas close to Attock and Mehmoodkot installations where more than 64 per cent growth in sales had been reported over the last few months. The sources said the product was being sold in Afghanistan at about Rs50 per litre against about Rs34 at home.

Meanwhile, the price differential claims (PDCs) payable by the federal government to the oil companies have been estimated to increase to Rs45 billion as on December 31, even after payment of Rs12 billion to Pakistan State Oil (PSO) a few days ago through a banking consortium led by Habib Bank Limited at an interest rate of almost 10 per cent. This liability along with another Rs6 billion to be paid to Shell Pakistan soon would increase to Rs22 billion (instead of Rs18 billion) to be payable in lump sum in 2010 by the next government from the public exchequer.

The PSO’s dues would again increase to about Rs24 billion by the end of the month, followed by Rs10 billion of Shell, Rs4.5 billion of Caltex and Rs7 billion of other oil companies like Admore and Askar Oil which have virtually stopped diesel sales as refineries have refused supplies because of their limited paying capacity.

The crisis situation did not aggravate in a day or two. The ministry of petroleum had been informing the government since late October.

Overall oil reserves have never been so low in Pakistan’s history and on such a prolonged basis. Even after the 1998 nuclear tests, Pakistan had oil reserves for more than 11 days when the country did not have enough foreign exchange reserves for oil purchases and had to bank on supplies from Saudi Arabia on deferred payment.

About 7.5 million tonnes of diesel was consumed in the country last year as against total oil consumption of 17.5 million tonnes. Furnace oil has the second largest share and remains in the range of 5-7 million tonnes depending on power production requirements.