ISLAMABAD: Due to the ongoing liquidity crisis affecting the US dollar, the import of essential chemicals that refineries require to process crude oil may not be processed. As a result, Pakistan may experience a shortage of petroleum products.
According to industry sources who spoke with The News, “The LC for the import of chemicals critical for refinery operations is not being opened. This situation may lead to reduction or suspension of the operations of the refineries, resulting in a shortage of POL products, particularly Mogas (petrol).”
One of the chemical suppliers stated, “The central bank has informed us that no LC will be opened until December 6, 2022, the date of payment of a bond worth $1 billion.”
The publication also said that oil marketing companies (OMCs) were having the same problem, which was causing the crude oil and finished product imports to take longer to arrive. The issue of essential chemicals, on the other hand, is of the utmost importance because a delay in their import will harm refinery operations.
When contacted, a Petroleum Division spokesperson and other senior officials provided no justification for delaying the opening of LCs for essential chemical imports.
The country currently imports 87% of crude oil and finished POL products. Sources claim that suppliers have been denied access to LCs essential to refinery operations, despite the fact that the existing refineries use a variety of inputs to process crude to Pakistan’s specifications.
Sources in the refinery industry confirmed that some refineries have also written letters of support to chemical suppliers to ensure the import of essential chemicals.
A chemical supplier asked Dr. Asif Ali, Director of Exchange Policy at the State Bank of Pakistan, to open LC for the import of chemicals on November 25 because of the sensitive nature of the matter.
The letter stated, “Since the unavailability of these chemicals can affect the operations of the refineries, it is requested that the LC may be opened without delay.”
Source: Geo News
