A looming petroleum shortage crisis across Pakistan has been temporarily averted, providing a brief relief to the public. The Sindh government has allowed Pakistan State Oil (PSO) to clear its oil shipments for 15 days without furnishing a bank guarantee.
The decision provides a temporary solution to an escalating dispute over the “Infrastructure Development Cess.” One of PSO’s ships has been cleared based on the old “undertaking” method, and other oil marketing companies (OMCs) expect the same 15-day concession.
OMCs argue that the matter is already being heard by the Supreme Court. They warned that forcing them to provide bank guarantees would severely disrupt their cash flow, a cost that could eventually be passed on to consumers at a rate of up to 3 rupees per liter.
However, the truce appears fragile. The Sindh Excise Department has already issued another letter, instructing the companies to submit bank guarantees instead of undertakings, signaling that the underlying conflict is not yet resolved.
