Business Desk 
Oct 21, 2025
Pakistan may face a countrywide fuel shortage as multiple petroleum cargoes remain stuck at the ports in Karachi, following the Sindh government's decision to reinstate a 100% bank guarantee requirement under the Sindh Infrastructure Development Cess (IDC) on Tuesday.
The Oil Companies Advisory Council (OCAC) warned that the fuel supply chain could be disrupted throughout the country within just a few days if the situation is not resolved.
Pakistan faces fuel shortage risk
In a letter to the Sindh chief minister and federal authorities, OCAC stated that at least five vessels awaiting clearance are transporting petrol and diesel for Pakistan State Oil (PSO), Hascol Petroleum Limited (HPL), Pakistan Gasoline Limited (PGL), and Parco.
Stockpiles of motor spirit (petrol) in Keamari are quickly running low, causing potential serious nationwide disruption, especially since this is the agricultural season." The oil supply chain is on the brink of collapse. Recovery could take over two weeks if cargoes are not cleared now," warned the OCAC.
The controversy concerns the 1.8% IDC imposed by Sindh and Balochistan on imports of petroleum products. This case is pending in the Supreme Court.
In the meantime, the Sindh Excise Department has suddenly revoked an interim agreement that allowed bank undertakings in place of guarantees, and it is now demanding billions of rupees per vessel, financially burdening the industry.
The OCAC urged the Federal Board of Revenue (FBR) and Pakistan Customs to clear all petroleum cargoes immediately without bank guarantees and called for a policy-level solution.
Recommendations include formally recognising petroleum pricing as a federal subject, integrating IDC into fuel pricing, and establishing a framework to recover past IDC dues.
