ISLAMABAD: Pakistan may face a shortage of petroleum products as refineries cannot process imports of essential chemicals required for crude oil processing due to the ongoing US dollar liquidity crisis.
“LCs are not being opened for import of chemicals critical to refinery operations and this situation may lead to reduction or suspension of operations of refineries, resulting in POL,” industry sources said. There may be shortage of products, especially Mogas (petrol),” industry sources told JEE News.
One of the chemical suppliers said that the central bank has informed us that no LC will be opened till December 6, 2022 – the date of repayment of the $1 billion bond.
The publication also stated that oil marketing companies (OMCs) are also facing the same situation due to which the shipment of imported finished products and crude oil is being delayed. However, the issue of essential chemicals is critical, as delays in their importation will harm refinery operations.
Contacted Petroleum Division spokesperson and other senior officials did not reveal any justification for the delay in opening LCs for import of essential chemicals.
Currently, the country imports 87 percent of POL’s finished products and crude oil. Sources said existing refineries use various inputs to process crude to meet Pakistan’s specifications, but suppliers have been denied opening critical LCs for refinery operations.
Refinery sector sources confirmed that some refineries have also written letters of support to chemical suppliers to ensure import of essential chemicals.
Considering the sensitivity of the matter, a chemical supplier wrote a letter to Dr. Asif Ali, Director, Exchange Policy, State Bank of Pakistan, on November 25, demanding opening of LC for import of chemicals.
“As the non-availability of these chemicals may affect the operations of the refineries, it is requested that the LC be opened without further delay,” the letter said.
