Pakistan braces for worst diesel shortage

INTERNATIONAL DESK: Amid the uncertainty surrounding the country’s debt-ridden economy, Pakistan Prime Minister Shehbaz Sharif has been warned by experts that the country would face the worst shortage of diesel next month.

This comes as diesel stocks were depleting fast as only 18-day supply remains in Pakistan, The Express Tribune reported citing sources.

Experts had urged Shehbaz to increase oil prices to avoid the swelling price differential claims that accumulated to around PKR 60 billion in only one month of April this year, the Tribune report added.

The newly elected prime minister was also informed that there would be no protests if the oil prices were increased. However, protests would start if diesel was not available in the market due to the poor financial health of the oil industry.

The Pakistani publication said Shehbaz had refused to increase the oil prices despite the grave situation of the oil industry.

The Pakistan State Oil (PSO), earlier, had made an attempt to import diesel by floating a tender but no trader participated. It had arranged one diesel cargo at the highest premium rate of USD 13 due to non-availability of diesel in the global market.

Against this backdrop, the Pakistan government has directed the oil refineries to boost local production to tackle the looming diesel shortage crisis.

However, the refineries in the country were also facing a financial crisis due to the pending price differential claims following the freezing of oil prices. (ANI)