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 opposed the idea of deregulating petroleum (POL) prices, according to a national newspaper report.
They believe that OGRA’s proposal to remove the obligation to buy domestic products from refineries lets oil marketing companies choose their own petroleum stocks, which worsens the current situation.
All five refineries in the country are concerned that smuggling and OGRA’s plan to deregulate could harm their upgrade plans. They are especially unhappy with OGRA’s suggestion to ease restrictions on selling local products.
Refineries are saying that the government should talk to them about how to deregulate. They’re saying it’s important to improve the quality of fuel and save money by upgrading, but if the government suggests unreasonable things, refineries might have to close permanently.
The Oil Companies Advisory Council (OCAC) has cautioned the government about how widespread smuggling could harm government income and local refineries. They’re worried it might disrupt the planned investments in expanding and improving refineries to meet eco-friendly standards.
