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 Orlando Echo 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 Orlando Echo.
More InformationMADRID, Spain: Liverpool footballer Diogo Jota and his younger brother, André Silva, have died in a car accident in Spain. Spanish...
LONDON, U.K.: An unrelenting heatwave sweeping across Europe has pushed early summer temperatures to historic highs, triggering deadly...
President Donald Trump's plans to build a space-based Golden Dome missile defense shield have drawn immediate criticism from China,...
NEW YORK CITY, New York: Paramount has agreed to pay US$16 million to settle a lawsuit brought by U.S. President Donald Trump over...
LONDON, U.K.: British Prime Minister Keir Starmer won a vote in Parliament this week to move ahead with changes to the country's welfare...
WASHINGTON, D.C.: President Donald Trump will meet Israeli Prime Minister Benjamin Netanyahu at the White House on Monday. President...
WASHINGTON, D.C.: In a significant ruling last week, the U.S. Supreme Court upheld a Texas law requiring age verification for users...
EVERGLADES, Florida: Over the weekend, a diverse coalition of environmental activists, Native American leaders, and residents gathered...
Washington [US], July 5 (ANI): Elon Musk is threatening Republicans who voted for President Donald Trump's 'big, beautiful bill,' posing...
(Photo credit: Eakin Howard-Imagn Images) Catcher Agustin Ramirez, who entered this weekend leading all major-league rookies with...
(Photo credit: Daniel Kucin Jr.-Imagn Images) Baltimore's Dean Kremer will try to extend his streak of scoreless innings on Saturday...
(Photo credit: Mady Mertens-Imagn Images) The Cincinnati Reds are becoming known for their resilience. Fresh off an impressive...