ANI
22 Jun 2022, 22:07 GMT+10
Islamabad [Pakistan], June 22 (ANI): Amid an acute shortage of petroleum products, refineries in Pakistan have urged the federal government to take urgent steps to resolve this issue as a trade credit crisis would completely engulf oil marketing companies too after refineries.
Foreign banks are still not confirming local refineries' letters of credit (LCs) for crude oil imports.
In January this month, oil refineries in the country had warned the government of a looming shutdown of their operations in a couple of weeks due to high and yet rising stocks of furnace oil.
The News International reported that the foreign banks were still not confirming local refineries' letters of credit (LCs) for crude oil imports.
Oil marketing companies (OMCs) are also struggling to get their LCs confirmed by the global banks for the import of petroleum products, it was revealed on Monday during the meeting of the representatives of refineries and OMCs with the high-ups of the Ministry of Petroleum Division, The News International reported.
Citing sources, the publication reported that the issue of blocked trade credit is on the verge of turning into a crisis for Pakistan's oil sector.
"The severity of the issue can be gauged from the fact that even state-owned Pakistan State Oil has now started feeling the heat as two of its cargos carrying petroleum products are anchored in the international waters and can't enter the country's territorial water to offload the cargo due to non-confirmation of LCs by the international banks," a source said.
There will be a high risk of closure of refineries in February in the absence of a significant upward revision in demand, Pak-Arab Refinery Company Limited (PARCO) had said.
The total monthly furnace oil production of the refineries was more than 200,000 tonnes, said PARCO, adding that this is on top of about 700,000 tonnes currently in stocks of refineries, marketing companies and power plants.
Calling for an immediate need to address the critical issue of high furnace oil stock levels, the refineries have demanded an urgent high-level meeting on the issue to work out a firm demand for furnace oil for February to enable the industry to plan refinery operations.
Due to high furnace oil stocks, at least three refineries recently faced shutdowns and others had to go for production cuts, according to Dawn. (ANI)Get a daily dose of Professional Autos news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Professional Autos.
More InformationFRANKLIN, Tennessee: Hundreds of thousands of Nissan and Infiniti vehicles are being recalled across the United States due to a potential...
REDMOND, Washington: Microsoft is the latest tech giant to announce significant job cuts, as the financial strain of building next-generation...
LONDON UK - U.S. stock markets were closed on Friday for Independence Day. Global Forex Markets Wrap Up Friday with Greeback Comeback...
SANTA CLARA, California: Nvidia came within a whisker of making financial history on July 3, briefly surpassing Apple's all-time market...
SACRAMENTO, California: California's multibillion-dollar farms are facing a growing crisis—not from drought or pests, but from a sudden...
WASHINGTON, D.C.: President Donald Trump says the United States could soon reach a trade deal with India. He believes this deal would...
Agartala (Tripura) [India], July 6 (ANI): A crucial Airport Advisory Committee meeting was held on Saturday at the Maharaja Bir Bikram...
Kabul could become the worlds first capital to run out of water completely, experts say, blaming the crisis on rapid population growth,...
New Delhi [India], July 5 (ANI): Young Indian was created to revive Associated Journal Limited (AJL) and not to earn rent, Congress...
Sheopur (Madhya Pradesh) [India], July 5 (ANI): Heavy rainfall in Madhya Pradesh's Sheopur district on Saturday led to severe waterlogging,...
Raipur (Chhattisgarh) [India], July 5 (ANI): Chhattisgarh Chief Minister Vishnu Deo Sai on Saturday inaugurated a three-day foundational...
New Delhi [India], July 5 (ANI): The work on the Mumbai-Ahmedabad high-speed bullet train project is going on in full swing in Maharashtra,...