Pakistan left with only five days of diesel stocks

Islamabad: Pakistan has been left with only five days of diesel stocks following oil prices in the international market hitting around $112 per barrel that stood at $94 per barrel before the start of Russia-Ukraine war, Express Tribune reported.

The war has caused the falling of global diesel stocks and other middle distillates to the lowest seasonal level since 2008.

The Oil Companies Advisory Council (OCAC), a body of oil industry, had already warned the Pakistani government about the diesel shortage crisis due to depletion of stocks globally. Other reason was that Pakistani banks had also put the oil companies in high-risk category and refused to grant loans.

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The OCAC had also written a letter to Pakistani central bank governor to intervene in this regard.

The Pakistan State Oil (PSO) — the state-run oil marketing company — has informed the energy ministry (petroleum division) about the situation in a letter sent to the director general oil.

The company pointed out that oil marketing companies (OMCs) had defaulted in oil imports, especially high-speed diesel (HSD), from December to March because of the Russia-Ukraine war, Express Tribune reported.

The PSO said it had resulted in a shortfall of 205,000 metric tons of diesel imports from January to March 2022.

According to the US Energy Information Administration, distillate fuel oil inventories in the US fell by 21 per cent to 30 million barrels that were below the pre-pandemic five-year seasonal average and at the lowest level since 2005. The stock in Europe also fell by 8 per cent to 35 million barrels — below the pre-pandemic five-year average at the lowest level since 2008.

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