Petrol pumps in Pakistan on the verge of closure as nation's foreign exchange witnesses sharp drop

Petrol pumps in Pakistan are on the verge of closure as the nation's foreign exchange is witnessing a sharp decline as it has reached to an all-time low, claimed reports.

As per reports, the nation's foreign exchange reserves held by the State Bank of Pakistan (SPB) have dropped to an all-time low of USD 4.343 billion.

With this development, the country is sufficient only to cover three weeks of imports and following this, there also has been a report of petrol and diesel shortages in the country. 

However, the Pakistan Oil and Gas Regulatory Authority (ORGA) has denied reports of petrol and diesel shortages.

''Sufficient stocks are available in the country to fulfil the petrol demand for the next 18 days and diesel demand for the next 37 days,'' media reports quoted ORGA as saying.

As per ORGA, ships carrying 101,000 metric tonnes of petrol are at berth/outer anchorage. 

''The local refineries are playing their role in meeting the demand for petroleum products,'' an official statement said.

However, as per reports, one oil cargo from Pakistan State Oil (PSO) has already been cancelled while the Letters of Credit (LC) for another cargo scheduled to be loaded on January 23 are yet to be confirmed.

In a letter to the SBP Governor, the Petroleum Division drew his attention to the difficulties faced by oil refineries and marketing companies in setting up LCs. 

Reportedly, Pak Arab Refinery Limited (Parco) plans to import two cargoes of crude oil of 535,000 barrels each, but banks are not keen to open and confirm LCs.

The reports further said that a crude oil cargo of 532,000 barrels is scheduled for loading on January 30 for Pakistan Refinery Limited (PRL). However, its LC is yet to be confirmed and is being negotiated with the state-owned bank. 

Two petrol cargoes of PSOs, which are in line, awaiting confirmation of LC by local banks, the reports claimed.

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