Refineries given green light to import crude oil

KARACHI: The government has granted permission to refineries to import crude oil.

According to a notification of the Ministry of Energy (Petroleum Division), the decision has been taken due to the rising demand for fuel during the harvesting season.

“… high consumption of Motor Gasoline/ HSD have been witnessed since 1st April, 2020 which is due to progressing harvesting season across the country,” the notification stated.

As per current practices, oil marketing companies are allowed to keep 20 days of fuel in their storage. Following the massive dip in demand for petroleum products owing to the nationwide lockdown, the federal government decided to place a ban on the import of crude oil on March 26, 2020.

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Sources claim that the decision to lift the ban is taken in consideration of the massive slash in international oil prices and owing to the increase in demand due to the lockdown being eased across provinces.

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Ariba Shahid
The author is a business journalist at Profit. She can be reached at [email protected] or at twitter.com/AribaShahid

2 COMMENTS

  1. In view of current Oil prices around $16 a barrel I believe the Govt should allow Refineries to import whatever they can instead of just 20 days Storage.

  2. Government should intervene for masive Crude Oil import on deferred payment on G2G basis. This will not only increase the oil stocks in the country but will also help to support poor people of Pakistan by offering cheaper fuel for their consumption.
    FOREX savings by importing Crude Oil inplace of finished product on high prices will also bring a positive impact on overall country’s revenues.

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