Treasure Magazine

Treasure Magazine

Petrol crisis hits Karachi and other parts of Pakistan

1 min read
PSO

Federal govt enhanced Petroleum levy on petrol by 6.24 per liter, while it cut prices of petroleum products

KARACHI:  The state oil company, Pakistan State Oil (PSO) is only supplying petrol from its outlets in Karachi, while Shell, Attock, and other petrol pump are dried up.

Owing to the reduction of oil supplies by major oil marketing companies, the petrol crisis has hit Karachi and its adjoining areas as oil retail outlets go dry. The same news are also receiving that the outlets of Shell Pakistan, Attock Petroleum, and others are not selling regular petrol.

According to the sources, the oil industry had asked the government to freeze oil prices till June 15 to encourage the oil companies to import oil and secure the oil industry from heavy inventory losses.

At one hand the government enhanced petroleum levy on petrol by Rs 6.24 per litre to Rs 30 per litre and on the other side reduced the ex-refinery rate by over Rs 11 per litre which was a major blow to oil industry.

The oil industry had been asking the government to either freeze oil prices till June 15 or freeze ex-refinery price for petrol. But government made reverse decision and reduced the rate of ex-refinery price for petrol.

Oil industry sources say that it could not sell petrol at current ex-refinery rate to avoid the inventory losses. The oil importing companies except PSO had no plan to import oil to avoid losses.