Islamabad (Lord Media): Oil marketing companies have advised the government against reducing oil prices without consultation. The Oil Companies Advisory Council (OCAC) has requested an urgent meeting with the Federal Minister of Petroleum, demanding a fair pricing system.
The OCAC has written to the government expressing concerns about potential disruptions in fuel supply. The letter states that unilateral decisions on petroleum prices have plunged the oil industry into a severe financial crisis, with weaker companies at risk of bankruptcy.
Oil companies claim that the new pricing formula has resulted in a loss of 104 billion rupees for oil companies and refineries, while government decisions have affected their working capital and liquidity.
According to the council, if the current policy continues, the fuel supply chain could be endangered. It is unfair and unsustainable to place the burden of public relief on oil companies.
The OCAC noted that refineries have supplied fuel to the military and Hajj flights at old prices in the national interest, while the margins for oil marketing companies have awaited revision for nearly two and a half years.
