Pakistan will cut term diesel imports from Kuwait to 200,000 tons for November to December supplies, down from an initial plan for 300,000 tons, an industry source familiar with the matter said on Wednesday. Besides a reduction in term imports, Pakistan State Oil (PSO) had no plans to issue a spot tender to buy gas/oil as domestic consumption ebbs during winter, he added.
"There is plenty of gas/oil stocks in Pakistan. Demand is going down," said the source from Karachi. "During the cold months, road transportation will also be hampered. That will translate to lower diesel demand." The country is also reeling from the global financial crisis, which puts a lid to its diesel imports. Pakistan's foreign currency reserves have been falling at a rate of nearly $1 billion a month and it is facing a balance of payments crisis, with just a few weeks to raise billions of dollars in foreign loans needed to meet debt payments and pay for imports.
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