Pakistan State Oil (PSO) has postponed the import of two cargoes of diesel from Kuwait Petroleum Corporation (KPC) after sales through the legal channel plummeted dramatically.
The state-owned oil marketing company (PSO) has delayed these imports due to low demand for diesel through legal channels after smuggled Iranian oil dominated the local market due to lower prices, reported a national daily.
PSO has an agreement with KPC for the import of diesel and has placed an order for two cargoes of 50,000 MT each. According to sources, PSO requested that KPC halt the delivery of these cargoes, which were scheduled to arrive in Pakistan by the end of this month.
The country’s diesel demand is being met by smuggled diesel because the high price of Pakistani diesel makes it nonviable against Iranian fuel. The price of high-speed diesel in Pakistan is Rs. 293 per liter, while the price of smuggled Iranian diesel varies between Rs. 230 to Rs. 235 per liter.
The majority of heavy traffic has shifted to Iranian diesel, and public transportation is also using the same grade. The total diesel stocks in the country have reportedly increased by 680,000 MT, which is enough to meet diesel demand for 44 days. These stocks have accumulated as a result of low diesel sales through legal channels.
The total monthly sale of diesel from the formal sector is around 15,500 MT, which is less than the actual demand (>25,000 MT). The oil industry recently raised the issue of Iranian smuggled diesel with the government when it met with the Petroleum Minister in Karachi, as refineries have been particularly affected by Iranian diesel, which is being pumped in massive quantities. But the government has yet to do anything.
Because it imports massive amounts of crude and petroleum products, the petroleum group is the largest foreign exchange consuming sector. Therefore, the stockpiling of diesel at refineries has harmed their operations, forcing Pak Arab Refinery Limited (PARCO) to shut down last week. The company temporarily ceased operations due to a reduction in storage capacity caused by the non-lifting of diesel produced by the company.
Diesel ⛽ mill raha ha hamin jya lgga iran sa mngwayen kuwait sa ya saodia sa ya apna mulak sa nikalan.
Iran nadik ha currency b down ha uski transportation cost b kambpreagi . Afghanistan ko b iran sa hi oil lana cheyya.
Go grow Pakistan
Go grow PSO.
#BepakistaniBuyPakistani.
#MadeinPakistan