ISLAMABAD: The government has initiated an investigation into allegations of petroleum product hoarding by oil marketing companies (OMCs) following a surge in panic buying linked to regional tensions involving Iran.
Prime Minister Shehbaz Sharif has directed the Federal Investigation Agency to examine the role of certain OMCs as well as officials of the Oil and Gas Regulatory Authority in the alleged stockpiling of fuel.
Preliminary findings suggest that at least one company may have withheld inventory to create artificial shortages and influence prices. Investigators have recorded testimony from officials within the Directorate General of Oil, pointing to possible market manipulation by certain players.
The issue gained urgency after panic buying spread across the country following escalating regional tensions. The government subsequently increased fuel prices on March 7 to ensure continued availability.
In a letter dated April 16, OGRA highlighted concerns about hoarding and sought approval for a Rs128 billion mechanism to settle price differential claims. The regulator noted that companies found guilty would be excluded from compensation.
Officials said the FIA investigation is progressing and is expected to be completed soon, with its findings likely to inform further regulatory and legal actions.
