Pakistan unable to stock diesel amid Russia-Ukraine conflict
Hammad Azhar says nation has a one-month stock of diesel and petrol
March 15, 2022
- Pakistan struggles to buy diesel from Russia as there has been a supply shortage.
- Traders target Europe to get diesel imported.
- Hammad Azhar says nation has a one-month stock of diesel and petrol.
Pakistan is struggling to buy diesel from Russia as there has been a supply shortage due to the Russia-Ukraine conflict that has caused widespread disruption to the supply chain.
Traders are targeting Europe to get the diesel imported, Bloomberg reported.
As the world faces a shortage of industrial and transport fuel, Pakistan State Oil is unable to stock any additional diesel from its main supplier — the Kuwait Petroleum Corp. However, Pakistan has bought cargoes from the spot market.
According to a spokesperson for the retailer, PSO has requested more diesel from KPC. “Product is moving toward the west,” he said, adding that the international supplies should be expanded, according to Bloomberg.
The ongoing Ukraine-Russia conflict had already put pressure on the oil supplies, but Pakistan is facing added pressure when it comes to finances due to Prime Minister Imran Khan’s relief package — in which he slashed the prices of petrol and electricity.
Pakistan’s energy costs double to $12billion during the seven-month period from July to January.
With an increase in the prices, Pakistan’s Oil and Gas Regulatory Authority has advised PSO to buy fuel for the next three months for the private retailers.
“While its term supplies remain undisrupted, the state-owned retailer bought a diesel cargo set to load in late March on the spot market at a premium of nearly three times that of its agreed term contract. A purchase tender for an April-loading cargo went without offers, according to traders,” said Bloomberg.
Meanwhile, the Energy Minister of Pakistan Hammad Azhar said that the nation has a one-month stock of diesel and petrol.
“This is the highest stocks cover in many years. Some newspapers have carried the news that only 5 days stock is left. This is fake and contrary to the facts,” he added.
