KARACHI – Oil companies flagged potential fuel crisis after new policy by Sindh government that imposes 1.85% Infrastructure Cess along with mandatory bank guarantee.
Oil Marketing Association of Pakistan (OMAP) warned that measure could halt petroleum imports within days, putting country’s already fragile fuel supply chain at risk. In letter to Federal Energy Minister Ali Pervaiz Malik, OMAP Chairman Tariq Wazir Ali called for immediate federal intervention to prevent disruptions.
The association highlighted that the new bank guarantee requirement would tie up working capital for oil marketing companies (OMCs), which are already facing challenges such as delayed tax refunds, foreign exchange losses, and low regulated profit margins. Industry insiders estimate the additional cess adds around Rs2.5–3 per litre to fuel costs, an increase that cannot be passed on to consumers under current pricing rules.
Oil Companies Advisory Council (OCAC) also warned that several petrol and diesel shipments for companies like PSO, HPL, and Parco are currently stranded at Karachi ports due to the policy. Delays in customs clearance, they said, could severely disrupt the supply chain.
Industry groups urged Energy Ministry to coordinate with the Sindh government and the Federal Board of Revenue (FBR) for a swift resolution, cautioning that any delay could lead to fuel shortages, hamper transport and logistics, and affect the ongoing agricultural season.
OMAP stressed that urgent action is essential to ensure energy security and economic stability, warning that Pakistan could face a full-scale petroleum supply crisis if the policy is not reversed.
