Islamabad: Pakistan’s economic crisis has started reflecting upon its fuel situation, with petrol pumps reporting shortages as most of the Oil companies have stopped importing the essential commodity, according to media reports.
Of the country’s 50 Oil Marketing Companies (OMCs), only 4 major firms hold 90% of the petrol stock while the rest are not importing the fuel fearing loss of the critical foreign exchange, The News reported today.
Punjab, the most populous province, is the worst hit by the shortage of petrol, according to Geo News.
The crisis has worsened over the last few days despite the government’s warning against hoarding petrol in anticipation of an increase in its price in the next fortnightly review, slated for February 15, 2023.
Smaller OMCs do not have the petrol stock of even 20 days as they are not importing the fuel because of fears about exchange rate losses, the media reports said.
The State Bank of Pakistan (SBP), the central bank of the country, has reported that the foreign exchange reserves held by it have slipped to $2,916.7 million as of February 3 from $3.08 billion on January 27.
Also read: Pakistan’s Economic situation critical; Forex reserves drop below $3 billion
Only Pakistan State Oil (PSO), Shell Pakistan, Total Parco and Attock Petroleum were importing petrol and 90% of the stock lies with these four companies, the Geo News said.
“Who will import petrol when there are apprehensions that exchange rate losses would not be adjusted and would take time to be paid back,” asked an official of an OMC, according to the Geo News.
Apart from low import of the fuel, petroleum dealers are also having a field day as they are hoarding petrol in view of the expected increase in prices by mid-February.
The economic crisis has also hit the automobile industry, with two major companies, including Pakistan Suzuki, temporarily shutting down manufacturing plants.
Also read: Economic crisis forcing shut down of automobile plants in Pakistan
