Fuel Supply Disruption Looms as Sindh Cess Delays Karachi Port Clearance
The Sindh Cess delays at Karachi Port have sparked fears of a fuel shortage across Pakistan. The Sindh government’s enforcement of the Infrastructure Development Cess has slowed the clearance of petroleum cargoes. As a result, vital fuel supplies risk disruption at a national level.
OCAC Raises Urgent Alarm
The Oil Companies Advisory Council (OCAC) has written to Sindh Chief Minister Murad Ali Shah, warning of an immediate crisis. Oil tankers like PSO’s MT Islam 2 and MT Hanifa are waiting for customs clearance. Stocks at the Keamari oil terminal are dropping fast. Therefore, OCAC urged the government to act before fuel supplies run dry.
In addition, upcoming cargoes from Wafi Energy and Parco may also face clearance delays. If this happens, the situation could worsen within days. The agriculture season is underway,so fuel shortages may hurt farming and transport activities. Even if resolved quickly, normal supplies could take two weeks to recover.
Cess Sparks Legal and Financial Tension
The Sindh Infrastructure Development Cess of 1.8% could raise fuel prices by over Rs3 per litre. This increase will directly impact consumers. The levy, first imposed in 1994, has faced multiple legal battles. Although the Sindh High Court upheld it in 2021, the Supreme Court later suspended that order.
However, the Sindh government has reinstated the need for bank guarantees before customs clearance. The oil industry says this move threatens financial stability and continuous supply. Meanwhile, the federal government argues that petroleum pricing falls under its domain.
Therefore, industry leaders are calling for an urgent solution to prevent a nationwide fuel disruption.
