Excess Diesel Storage Puts Pakistan’s Oil Supply Chain at Risk, Refineries Demand Action

Pakistan’s oil supply chain is facing a significant threat due to excessive diesel storage, according to a recent alert from four major oil refineries. In a formal letter addressed to the petroleum secretary, the refineries highlighted that diesel stock levels have surged to a critical point, with over 770,000 tons currently in storage. This figure represents more than 50 days of diesel supply.

The refineries have urgently requested that the government halt or delay any further diesel imports for the month of September. They argue that continued imports could exacerbate the oversupply situation, potentially destabilizing the oil supply chain and harming the country’s economy.

The refineries have stressed the urgency of addressing the oversupply, emphasizing that the current situation is unsustainable and poses a serious risk to the country’s energy infrastructure. They have called for immediate governmental action to manage the diesel glut and prevent further economic impact.

The letter from the refineries reflects a growing concern about the stability of Pakistan’s oil supply chain and underscores the need for effective management of diesel imports to safeguard the nation’s energy resources.