Petrol pumps may get closed across Pakistan soon as refineries struggle to cope with declining fuel sales and an abundance of smuggled oil products in the market.
Refineries have strongly objected to the proposed deregulation of petroleum (POL) prices, reported a national daily.
They opine that OGRA’s suggestion to eliminate the requirement of uplifting domestic products from refineries allows oil marketing companies to procure POL stocks at their discretion which makes the current situation even worse.
All five refineries in the country warn that smuggling and OGRA’s deregulation model could jeopardize their upgrade plans. They were particularly unhappy with OGRA’s recommendations to relax the upliftment of local products.
Refineries said the authorities should consult them on the deregulation model. They added that improving fuel quality and saving money on foreign exchange through planned upgrades is crucial, but if unreasonable suggestions are implemented, refineries might shut down for good.
Oil Companies Advisory Council (OCAC) recently warned the federal government about the detrimental effects of rampant smuggling on government revenue and local refineries. They fear it could jeopardize planned investments in refinery expansion and upgrading projects aimed at meeting environment-friendly specifications.
There is far too much money to be made by everyone in this smuggling racket for it to be stopped.