Pakistan’s oil marketing and refining sector is facing a severe liquidity crisis after the government imposed unilateral cuts to fuel prices, industry representatives warned.
The move has triggered estimates of losses totaling approximately Rs105bn for refineries and marketing companies, according to reports from Dawn Business.
Several oil marketing companies (OMCs) have cautioned that the financial strain could push them toward bankruptcy.
Several oil marketing companies (OMCs) have cautioned that the financial strain could push them toward bankruptcy.
The warning comes at a time when foreign participation in the sector is already contracting, leaving domestic players with reduced access to capital and hedging instruments.
The abrupt price adjustment has effectively squeezed margins to unsustainable levels for many operators.
The development underscores the tension between domestic inflation control and the financial viability of energy infrastructure.