Pakistan faces possible fuel shortage due to delays at Karachi port
The country may face a fuel shortage in the coming days due to delays in clearing petroleum shipments at Karachi Port.
The uncertainty arose due to the imposition of the Sindh Infrastructure Development Cess by the Sindh government which had caused delays in the clearance of petroleum products at Karachi Port.
On this development, the Oil Companies Advisory Council (OCAC) had written an urgent letter to the Chief Minister, warning that petroleum cargos currently being discharged and ships docked at ports are also being affected, and immediate customs clearance is required.
OCAC stated that PSO’s oil tankers MT Islam 2 and MT Hanifa are anchored at berths awaiting customs clearance, while oil reserves at Keamari are running out. The two ships berthed at Karachi Port Trust (KPT) must be cleared immediately to ensure continuity in the nationwide petroleum supply chain.
OCAC further warned that if Wafi Energy’s petroleum cargo and PARCO’s crude cargo arriving on October 21 at KPT are not cleared, the problem will escalate. The implementation of the cess poses serious financial and operational risks to the downstream petroleum industry.
The Council added that the 1.8% cess could increase the cost of petroleum products by over Rs0.3 per litre, which will ultimately burden consumers since petroleum prices are regulated.
With the agricultural season ongoing, OCAC cautioned that any disruption in the petroleum supply chain could halt fuel distribution across the country. Even if resolved, it could take up to two weeks to restore normal supplies. The Council has urgently requested government intervention.
