TRADE & ECONOMY

OCAC Warns Fuel Supply Crisis Looms as Bank Guarantee Issue Threatens Imports

Pakistan’s Oil Companies Advisory Council warns of an impending fuel supply crisis, saying petroleum imports may halt if the bank guarantee issue isn’t resolved soon.
2025-10-22
OCAC Warns Fuel Supply Crisis Looms as Bank Guarantee Issue Threatens Imports

The Oil Companies Advisory Council (OCAC) has raised serious concerns over the growing bank guarantee crisis, warning that Pakistan may face severe disruptions in fuel supply if the issue remains unresolved.

In a letter addressed to the federal government, the OCAC stated that continued delays in addressing bank guarantee requirements could lead to a complete halt in petroleum imports. The council cautioned that the industry would not be responsible for any supply chain breakdowns resulting from the government’s inaction.

The OCAC emphasized that the Ministry of Energy’s immediate intervention is crucial to maintain the uninterrupted availability of fuel across the country. It highlighted that the petroleum industry imports 20 to 25 consignments each month, with each shipment valued between Rs 15 billion and Rs 25 billion.

“No member company in the industry has the financial capacity to provide bank guarantees at this scale,” the council noted, urging the government to take urgent measures to ease the financial burden on importers.

The OCAC further reminded authorities that it has been raising this issue with successive governments for years, yet no sustainable solution has been implemented. Without immediate action, Pakistan’s fuel supply chain — from refineries to consumers — could face significant disruptions, the letter warned.