Ahmed Mukhtar Naqshbandi
ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) on Tuesday strongly rejected reports of petrol and diesel shortage in the country, saying there is large stock available to meet 17 days of demand.
The Petroleum Division had warned the State Bank of Pakistan that the stocks of petroleum products may dry up as banks were refusing to open and confirm Letters of Credit (LCs) for imports.
OGRA denies reports
Imran Ghaznavi, spokesman for OGRA, said the country has enough reserves available to meet 17 days of petrol and 32 days of diesel demand. He said that ships with 100,000 metric tonnes of petrol are at the berth and that local refineries are playing an active role in meeting demand for petroleum products.
Like other sectors, the oil industry in Pakistan is facing hurdles in opening LCs owing to the shortage of US dollar in the country and restrictions put in place by the SBP. An oil cargo of Pakistan State Oil (PSO) has already been cancelled while Letters of Credit for another cargo, scheduled for loading on January 23 was not yet confirmed.
In a letter to the State Bank of Pakistan governor, the Petroleum Division drew his attention towards the difficulties being faced by oil refineries and marketing companies in establishing the Letters of Credit.
According to sources, Pak Arab Refinery Limited has planned to import two crude oil cargoes of 535,000 barrels each but banks were not willing to open and confirm the Letters of Credit.
One crude oil cargo of 532,000 barrels for Pakistan Refinery Limited has scheduled for loading on January 30. Its Letter of Credit has not so far been confirmed and it is in negotiation with a state-owned bank.
