A recent import restriction by the Federal Govt of Pakistan on various items many LCs stuck due to this ban. An Oil shortage also occurred in this situation. In this context, Oil companies show serious concern over this shortage and made contact govt to oversee this matter otherwise Petroleum products are in shortage in Pakistan.
(Infosette News) ISLAMABAD: The federal government has been urged to take immediate action to ensure the prompt issue of letters of credit to import petroleum products in order to prevent a gasoline scarcity in the nation.
This request was made by the Oil Companies Advisory Council (OCAC).
A letter was written by the Oil Companies Advisory Council (OCAC) on behalf of oil marketing companies (OMCs) and refineries, outlining the difficulties resulting from the opening of letters of credit (LCs) for the import of petroleum products being delayed.
There have been a few oil shipment cancellations as a result of the LCs not being opened.
Each month, Pakistan must import 650,000 MT of crude oil, 200,000 MT of High-Speed Diesel (HSD), and 430,000 MT of mogas for a total cost of almost $1.3 billion.
Critical imports of petroleum goods would be hampered if LCs weren’t formed promptly, which might result in a fuel crisis in the nation.
It should be reminded that if the supply chain is harmed, it might take six to eight weeks for everything to return to normal, the OCAC wrote in the letter.
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