Local refineries in Pakistan have urged the government to suspend the import of petrol and diesel until March, citing “difficulties in their operations” as oil marketing companies are not purchasing petroleum products from them.

In a letter addressed to the Oil and Gas Regulatory Authority, the refineries reported a 20% decrease in petrol sales and a 31% drop in diesel sales. The letter further stated that the country has 36 days of petrol stock and 39 days of diesel stock available, making it essential to halt imports.

The lack of rainfall has reduced diesel consumption and added to the challenges faced by local refineries, the letter said.

In January, the oil industry expressed concerns about its exclusion from an official working group tasked with developing a roadmap for deregulating the downstream oil sector.

Last year, the Special Investment Facilitation Council gave another deadline extension for signing agreements involving around $6 billion investment in the refining sector and launching a crackdown against the smuggling of petroleum products.

Refineries argued that the budget for 2024-25 nullified the Brownfield Refining Policy, which pertained to the establishment of new refineries and the upgrading of existing ones. They called for the restoration of the previous tax regime, which includes maintaining customs duties on diesel and sales tax regulations for all petroleum products.