Overview
Pakistan’s Oil Industry faces taught challenges and shows red signs of major fuel supply breakdown for the country. Companies are in serious trouble to provide the proper supply of petroleum products.
The Oil Company Advisory Council (OCAC) has written a letter to the government. They have mentioned the ongoing foreign exchange constraints and prevailing product prices are major causes of the alarming situation. Rupee depreciation along with new State Bank Policies hit the overall Oil refineries system.
Petroleum prices are affected due to economic challenges and the depreciation of the rupee value against the USD. Particularly, foreign exchange constraints have a direct link with petroleum product prices and imports.
Quick Notice
The latter has driven attention to the upcoming major breakdown which is important for the government to know. Authorities took quick action against the alarming situation to consider the OCAC. The State Bank of Pakistan and the chairman of the Oil and Gas Regulatory Authority (OGRA) forward the request to the finance ministry and mentioned the quick action needed for the matter.
The latter of OCAC has also addressed the request to establish a translucent structure in order to recover foreign exchange losses in product pricing. The oil industry has already requested many times to the ministry for action on it and in this latter this problem also addressed again.
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Conclusion
If the supply of petroleum products is affected, it might cause to shut down the upper-level production process. The economy is moving toward a crisis one by one. Petroleum product prices are not stable for a long time and now the break in supply will create the hardest situation in the country. Oil industries needed the government’s serious and immediate action on the request.
