Higher international fuel prices, and piling up fuel dues on the government in form of Petroleum Differential Claims (PDC) further increasing the financial constraints of the government and country’s financial system, says the OCAC sources.
“On the other hand, the Petroleum Differential Claims (PDC) payments are being processed by the government in a timely manner, but despite that, it further increases the financial constraints on enabling sustained oil imports to fulfill the overall fuel demand”, says Chairman OCAC, Waqar Irshad Siddiqui.
The primary representative of Pakistan’s downstream oil industry, the Oil Companies Advisory Council (OCAC), has also issued the sales numbers of High Speed Diesel (HSD) and Motor Spirit (MS) for the first fortnight of May 2022.
The cumulative sale of HSD for the first fortnight was 363,667 Metric Ton (MT) and the sale of MS was 363,210 MT.
Expressing his concerns about them, Chairman OCAC, Waqar Irshad Siddiqui, said, “The Downstream Oil Sector of the country has always remained committed to the interests of the country and the people. This is evident from the fact that the sector remained relentless and continued fulfilling its national obligation of serving the nation amidst global energy shortage, impact on availability and prices of oil due to [the] Russia–Ukraine conflict, sharply depreciating currency pushing the POL product prices to new heights, and limited credit facilities worsening the liquidity crunch of Oil Marketing Companies & Refineries”.
Regarding the sales numbers for the first fortnight of May, he commented, “The sales figures for the month of April 2022 and the first fortnight of May 2022 represent a clear commitment of the OMCs to fulfill surged demand due to the ongoing harvesting season, despite the havoc that has been created around price-hike translating into speculative fuel buying”.
“On the other hand, the Petroleum Differential Claims (PDC) payments are being processed by the government in a timely manner, but despite that, it further increases the financial constraints on enabling sustained oil imports to fulfill the overall fuel demand. With monthly sales of 919,442 MT for High Speed Diesel in the month of April 2022, registering an increase of 17% compared to the same period last year (Apr 21), and with appreciable sales numbers for the first fortnight of May 2022, the downstream oil industry is positive towards fulfilling country’s fuel needs with the support of the concerned authorities and ministries for the prosperity of the country,” Siddiqui explained.
With its manifold functions, the OCAC continues to represent the downstream oil industry at various forums and coordinates with the ministries to ensure the continued viability of the downstream oil sector.