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Major Cities May Face Fuel Shortage Amid Riots

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Major Cities May Face Fuel Shortage Amid Riots

Pakistan
11. May 2023
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Major Cities May Face Fuel Shortage Amid Riots

Where the historic riots have erupted around the country after paramilitary forces arrested PTI’s Chairman, major cities of Pakistan may face fuel shortages. As the law and order situation seems worse, oil marketing companies are striving hard to maintain the supplies in Lahore and other cities.

In a statement, petroleum dealers have raised concerns that 50% of filling stations could run dry after violent protests in the country. The Petroleum Dealers Association’s Secretary General, Jahanzeb Malik stated that the supply interruption was a precaution in the face of ongoing protest in the country. Additionally, OMCs have also averted supplies to ensure the safety of their customers and staff.

If a shortage happens, it could affect daily commuting, businesses, and transport, including hospitals and other sectors running mainly on fuel. Law enforcement agencies are taking necessary measures to stabilize the situation across Pakistan.

Moreover, in a bid to provide relief, the incumbent government is buying Russian oil in Chinese Yuan. Islamabad, amid BRICS collective de-dollarization efforts, has reportedly opened Letters of credit (LC) in Chinese Banks to purchase discounted oil from Russia.

Pakistan Buying Russian Oil in Chinese Yuan

As per the media reports LCs are opened in a bid to pay for the oil cargo – first ever oil purchase from Russia – for the first time in Chinese Yuan while ignoring the dollar’s hegemony. Pakistan will receive 100000 tons of Russian crude oil by the end of this month.

Islamabad is buying this oil on a free-on-board (fob) basis. Meaning oil refineries will pay for the imported crude oil. However, Pakistan is importing Russian oil on a cost, insurance, and freight (CIF) basis and payment will be made after the consignment is reached to the country’s port.

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