Islamabad, 7 January 2023 (GNP): Due to the US dollar shortage and significant rupee devaluation, Pakistan’s largest oil refinery, the Cnergyico refinery, has faced a crude oil shortage and has been closed for approximately a week.
An official statement from the company to OGRA was issued according to which:
“Cnergyico refinery (formerly known as Byco Petroleum) shall shut down from February 2, 2023 and will restart production from February 10, 2023 in line with our crude oil vessel arrival timeline. The industry is on the brink of collapse if immediate steps are not taken in respect of arranging financing to ensure imports.”
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The statement further read:
“Due to the increase in oil prices and successive depreciation of Pakistani rupee over the last 18 months, the trade finance limits available from the banking sector have become inadequate. As a result of the recent devaluation alone, the LC (letter of credit/ import) limits have shrunk overnight by 15-20%. It is requested that the banking sector be immediately requested through the State Bank of Pakistan to enhance the limit of our member companies (including Cnergyico).”
The company’s share price decreased by 3.18% (Rps 0.13) and ended Friday’s trading session at Rps 3.72 with 7.49 million shares traded at the Pakistan Stock Exchange (PSX).
