After slamming Pakistan’s Auto Industry, the prevailing LCs issue is embarked on hitting the oil market in Pakistan. Oil companies have warned the finance ministry, narrating the looming oil crisis in the country, and asked to issue letter of credit to import petroleum products to avert the calamity.
The Oil Company Advisory Council (OCAC) wrote a letter to the finance secretary on behalf of Oil Marketing Companies (OMCs) and refineries. It drew the attention of the ministry towards the issue begot in the face of closed LCs.
The council stated, “If LCs are not established on a timely basis, critical imports of petroleum products will be impacted, which may lead to a fuel shortage in the country.” The council further informed if this happens, the fuel supply would be compromised, it may take six to eight weeks to normalize the situation.
The OCAC Said, “These imports require the opening of LCs; however, the industry is facing severe challenges of opening and confirmation of the LCs, which has caused a delay in multiple cargoes and a few cancellations as well.”
To meet the energy deficit, Pakistan needs to import 430,000 metric tonnes (MTs) of mogas, 200,000 MTs of High-Speed Diesel (HSD) and 650,000 MTs of crude oil every month, costs around $1.3 billion.
OGRA Refutes Imminent Oil Crisis Reports
When the OCAC sounds an alarm pertaining to the forthcoming fuel shortage, the Oil and Gas Regulatory Authority (OGRA) has rubbished such reports.
In a press conference, Imran Ghaznavi, a spokesman for OGRA, informed that we have sufficient supplies of petrol and diesel, enough to last 17 and 32 days, respectively.
In a tweet, he said, “Sufficient stocks of Petrol& Diesel are available across the country. OGRA strongly rebut the speculations on Petrol/diesel shortages. Useable stocks in the country are good enough for 17 days of Petrol & 32 days of Diesel.”
Press Statement
Sufficient stocks of Petrol& Diesel are available across the country.OGRA strongly rebut the speculations on Petrol/diesel shortages.
Useable stocks in the country are good enough for 17 days of Petrol & 32 days of Diesel 1/2Spokesman OGRA
— Imran Ghaznavi (@ighaznavi) January 15, 2023
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