The oil companies warned the government that a possible petroleum crisis islooming large over the country due to the shortage of US dollars andseveral other factors.
The Oil Companies Advisory Council (OCAC) penned down a letter on behalf ofOil Marketing Companies (OMCs) and refineries to Oil & Gas RegulatoryAuthority (OGRA) and the federal government about the unavailability of rawmaterials.
The OCAC in a letter to the federal government highlighted the challengesbeing faced by the oil companies due to the shortage of petroleum products,US dollars, rupee devaluation and limited issuance of letters of credit(LCs) for imports.
The advisory council expressed serious concern over the devaluation of therupee due to which OCAC is facing a loss of over billions on daily basis.Moreover, the unavailability of dollars is interrupting the supply chainand production of petroleum companies.
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OCAC urged OGRA to transfer the pressure on the public by an increase inthe petrol and diesel prices to recover the marginal profit otherwise theoil industry will continue suffering from the financial crisis.
In the letter, the oil advisory asked State Bank to order the banks toimmediately increase the limit of LCs of oil companies to allow them forimporting oil and meet the industries demand.
