The Oil Companies Advisory Council (OCAC) has said oil industry has reached brink of destruction and government should take immediate steps to protect industry from destruction.
According to Oil Companies Advisory Council (OCAC), representative organization of oil refineries, oil industry has reached the brink of collapse while billions of rupees have been lost.
In a letter written to government, representative organization of oil refineries provided full awareness of their concerns and current dire situation of the industry.
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OCAC wrote in its letter that oil industry is facing a loss of billions of rupees due to a continuous decline in value of rupee against dollar.
According to Oil Companies Advisory Council, depreciation of rupee has led to a big difference in new rates of letters of credit (LCs) and prices of petroleum products.
OCAC letter said that Oil and Gas Regulatory Authority (OGRA) is not allowing the full impact of devaluation of Rs.
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According to OCAC, loss of some companies may be more than profit of the entire year due to depreciation of rupee. exchange rate difference should be passed on to public.
A letter from Oil Companies Advisory Council warned the government that trade finance facilities should be extended to ensure stable supply.
It should be noted that a few days ago, Federal Finance Minister has increased the prices of petroleum products by Rs. 35 per liter, however, OCAC is now demanding a further increase.