‘No gasoline disaster in Pakistan’: Govt rubbishes rumours of oil scarcity

Shoppers line up outdoors a PSO station on this undated {photograph}. — AFP/File

Responding to the rising panic within the oil trade and amongst customers, the federal authorities Friday dominated out any chance of a gasoline disaster in Pakistan, stating that the oil reserves required by the nation have been effectively in inventory.

The ministry of petroleum, in a press release, strongly denied the fears of petroleum scarcity within the nation. The assertion termed the claims of oil scarcity that had been circulating on social media as “rumours”.

The ministry made it clear that it had the required oil reserves already in inventory and that there’s “no chance of scarcity”.

“The Pakistan State Oil (PSO) and different oil delivery firms have enough shares of petrol, diesel, kerosene and different kinds of petroleum merchandise,” the assertion mentioned, including, “The amount of diesel accessible for storage within the nation is at full capability so folks shouldn’t take heed to rumours, speculations and deceptive data”.

In a separate assertion on Twitter, the PSO too confused that it had ample shares accessible within the provide chain as per the Oil and Fuel Regulatory Authority’s (OGRA) specified day saying: “Because the nationwide flag bearer, the PSO stays dedicated to fuelling the nation and is guaranteeing an uninterrupted provide of gasoline at its stores nationwide.”

Of their official communique, each PSO and the ministry of petroleum requested that the “rumours” of the scarcity of petrol not be circulated or shared by the media.

In accordance with the PSO, the ministry and OGRA are monitoring the standing of reserves of personal firms in order that the “nation’s provide chain continues to be maintained seamlessly”.

Fears of oil scarcity

Fears relating to the availability of petroleum started to sprout within the oil trade after banks refused to settle letters of credit score (LCs) for the import of crude and petroleum merchandise.

The chain of petroleum merchandise would take six to eight weeks to normalise within the nation if it was compromised on the premise of the refusal of banks to settle LCs for the import of crude and petroleum merchandise, the oil trade feared.

These fears have been expressed by the Oil Firms Advisory Council (OCAC) — the consultant physique of refineries and oil advertising firms (OMCs) — to the Ministry of Finance.

The OCAC sought the ministry’s intervention within the matter after its members began going through points within the settlement of LCs. This occurred although oil imports have been placed on the listing of important objects for opening and settlement of credit score letters.

OGRA on January 15 issued a clarification relating to the matter.

Taking to Twitter OGRA Spokesperson Imran Ghaznavi mentioned on Sunday that there “is ample inventory of petrol and diesel” within the nation. “OGRA strongly denies experiences of scarcity of petrol and diesel within the nation.”

He added, “Ample shares of petrol and diesel can be found throughout the nation. OGRA strongly rebuts the speculations on petrol/diesel shortages. Useable shares within the nation are adequate for 17 days of petrol and 32 days of diesel.”

Nonetheless, speculations and fears relating to the scarcity continued to flow into over the week as Pakistan’s central financial institution foreign exchange reserves plunged to the bottom stage since February 2014 after a decline of twenty-two.11%, posing a severe problem for the nation in financing imports.

This scarcity of essential {dollars} has left banks refusing to situation new letters of credit score for importers, hitting an economic system already squeezed by hovering inflation and lacklustre development, finally contributing to the fears of oil scarcity within the nation.

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