Oil marketing companies and refineries have warned the government of brewing fuel crisis in the country after Prime Minister Imran Khan’s announcement of freezing petroleum prices until the next budget.
On Monday, Prime Minister Imran Khan announced economic relief measures. In his address to the nation, the prime minister said the government was reducing petrol, diesel, and electricity prices and that they would not be increased till the next budget, which will be announced in June.
In response to the impact of PM’s announcement, a virtual meeting between the Oil and Gas Regulatory Authority (OGRA) and the petroleum division was held in Islamabad, in which oil marketing companies and refineries expressed serious concerns and questioned the mechanism of fuel price adjustment.
“How can we sell petroleum products at low prices when we are buying at high rate from the international market? And who will pay the price difference?” questioned oil marketing companies and refineries.
It is learnt that the secretary of petroleum division has said that the government was preparing a price adjustment mechanism. However, the government would pay later. Till then, oil marketing companies and refineries should bear the price difference.
In response to the secretary’s answer, oil marketing companies and refineries said that the situation doesn’t seem to be sustainable as the country may face an interruption in the supply of petroleum products.
However, the government should provide a guarantee for the price adjustment payments.