Tuesday, October 14, 2008, Shawwal 14, 1429    

Oil crisis may hit country next month

Shah Hasan

Islamabad—The diesel and petrol shortage may cause crisis which is most likely to hit the country next month, as liquidity crisis hit oil marketing companies (OMCs) have asked the government in latest communication that they would slash 50 percent diesel imports and import zero motor spirit, a senior government official told Pakistan Observer.

“The OMCs have asked the government if they are not paid their price difference claim (PDC) amounted to Rs 55 billion, they would not be able to import the diesel as per country’s requirements. This would lead the country to diesel shortage crisis.”

According to an official at Ministry of Petroleum and Natural Resources, the OMCs are ready to import diesel if they are paid 30 billion out of Rs 55 billion PDC. Owing to the liquidity crisis, OMCs are forced to place 50 percent cut in diesel import.

In case, the government did not take timely action, the country’ agriculture would suffer a lot, as Rabi season has set in and diesel requirement of the country to run tube-wells has increased manifold. This would also lead to more power crisis in the country, as diesel is used in thermal power houses.

The sources said that government is holding talks with oil industry people in Karachi today (Tuesday) on this important issue. This meeting would decide about the fate of agrarian economy of the country.

The country would next month witness the reduction of 40000 metric tons of motor spirit in the country against the requirement of 1,15,000 tone in one month. The diesel consumption of the country stands at 600,000 tons. If its import gets slashed by 50 percent, then 300,000 tone of diesel would be available which is not enough to cater to country’s needs. The official said that remotely situated areas and border areas of the country would be deprived of the required diesel.