KARACHI: The Oil Companies Advisory Council (OCAC) has rejected a reduction in prices of high-speed diesel, warning the federal government of a ‘HSD crisis’ across the country.
“The manipulation in pricing has generated an inventory loss for the industry to the tune of Rs11 billion which is not sustainable and will severely impact the already crippled oil industry,” the OCAC said in a letter to Chairman Oil & Gas Regulatory Authority (OGRA).
The council pointed out that the government, instead of passing on the increase or absorbing the impact of this increase by reducing Petroleum Levy, unilaterally reduced the price
Terming the reduction in diesel price ‘unilateral and unjust’ decision, the council noted that the government did not pass the increase or absorb the impact of this increase by reducing Petroleum Levy.
“The industry is already facing a severe financial crunch due to insufficient margins, increased markup, high global prices, depreciation of [the] Rupee and will not be able to manage uninterrupted fuel supplies if this manipulation in pricing is not rectified through immediate price revision,” the OCAC warned.
It is pertinent to mention here that Finance Minister Ishaq Dar on July 15 announced a reduction in the price of petrol by Rs9 per litre and high-speed diesel (HSD) by Rs7.
“The petrol price has been reduced to Rs253 per litre from Rs262 after a reduction of Rs9. Likewise, high-speed diesel price is being reduced by Rs7. It will now be sold at Rs253.50, down from the existing Rs260,” the minister said.
However, the finance minister did not announce any changes in the price of kerosene oil or light-diesel oil.
