March 8, 2023
1 min read

Pakistan’s oil industry in a fix

OCAC urged government to revise the prices based on the current exchange rate…reports Asian Lite News

Pakistans oil industry is reportedly in serious trouble in arranging crude oil and petroleum products owing to foreign exchange constraints and prevailing product pricing, particularly following the recent currency depreciation and increase in the central banks policy rate, media reports said.

Reporting these challenges to the government, the Oil Companies Advisory Council (OCAC) an association of more than three-dozen major oil marketing companies (OMCs) and refineries � has warned of a major disruption to the already fragile supply chain, Dawn reported.

In a communication to the ministers for finance and energy, the Governor of the State Bank of Pakistan (SBP) and the Chairman of the Oil and Gas Regulatory Authority (Ogra), the association has sought an urgent engagement to address the “severe impact of the recent depreciation of the rupee”.

The OCAC recalled that the oil industry had been requesting the ministries of energy and finance for developing a transparent mechanism for the complete recovery of foreign exchange losses in product pricing. It said the government should immediately revise the prices based on the current exchange rate but if it was not possible in the given challenging situation then at least a system should be put in place immediately.

The recent steep depreciation (of about Rs 20 against the US dollar) had made the existing letter of credit (LC) lines inadequate for the industry, resultantly “there is a grave danger that import of crude and refined products may be disrupted”, the industry warned and highlighted that it is also a point of great concern for the industry that the cost of opening confirmed LCs has gone up many times, adversely impacting the profitability as this cost is not absorbed in the pricing, Dawn reported.

ALSO READ: Pakistan has averted default, Army Chief soothes businessmen

Previous Story

TikTok ban edges closer as Senators unveil new bill

Next Story

Manchester Museum reopens; South Asian Gallery achieves overwhelming response

Latest from -Top News

No Relief for 26/11 Accused Rana

SC Rejects Rana’s Plea, Clears Path for Extradition…reports Asian Lite News The US Supreme Court has rejected a plea by 26/11 Mumbai terror attack accused Tahawwur Rana, seeking a stay on his

US Mulls New Entry Ban for Pakistan, Afghanistan

Pakistani sources said that vetting may expose deficiencies, risking a full US travel ban and jeopardizing countless Pakistanis and Afghans seeking immigration. Sources in the Pakistani establishment told IANS on Thursday that

Nepal Vows Early Exit FATF Grey List 

Finance Minister Bishnu Paudel placed the blame on the previous administration for Nepal’s inclusion in the FATF grey list.  Nepal’s Finance Minister Bishnu Paudel has assured that the country will be removed
Go toTop

Don't Miss

Sherman raises enforced disappearances in Pakistan

Sherman mentioned the disappearance of Priya Kumari, who vanished two

Pak Taliban announces shadow government

The geographical contours reveal that as of now the TTP