New Delhi (NVI): With the global oil industry bearing the adverse impact of Covid-19, the oil refineries in Pakistan have suffered huge losses and are left with no option but to shut down their operations, according to a The News report.
Pakistan’s refineries have apprised the government of their situation while seeking a bailout package if it wants to keep the industry afloat, the Pak daily reported.
Crude oil prices plunged below zero dollars a barrel for the first time in history earlier this week, owing to low demand across the world amid the pandemic situation.
Oil markets crashed in the US, where the prices of oil went into negative zone due to lack of demand, even as there was a recovery later.
The spread of the novel coronavirus recently and a price war between Gulf nations and Russia on crude has also sent oil prices into the negative zone. As a result, refineries in Pakistan have to bear the brunt of the severe price fluctuations, in recent months, resulting in huge losses, The News reported.
Three out of five refineries have already braved over Rs 16 billion in losses in the last nine months, according to the newspaper.
The two other refineries are also running huge losses and that they plan to make it public in the coming days, reports The News.
According to the newspaper, the Managing Directors of the five refineries including National Refinery Limited (NRL), Attock Refinery Limited (ARL), Pak-Arab Refinery (PARCO), Attock Refinery Limited (ARL), and BYCO told the government in a meeting yesterday that they were close to shutting down.
However, the Pakistan government has asked the refineries to come up with proposals for the bailout package.
