Oil refineries operating at 50 percent installed capacity: Kalim

All oil refineries in the country are operating on 50 percent installed capacity owing to paucity of funds, President Petroleum Marketing Business of Byco Petroleum Limited, Kalim A Siddiqui informed business community on Thursday. Speaking at first meeting of engineering science and technology Sub-committee of Karachi Chamber of Commerce and Industry (KCCI), he expressed fear that if this condition persists Pakistan may have to import refined oil to meet its requirement.
Replying a question about impact of oil prices reduction in the country, he said that the decision of increase in prices was reversed after enormous pressure from political parties and general pubic. He said nowhere in the world oil prices are revised on monthly basis. In many countries the prices are revised on daily basis and this frequent change in prices has very little impact on consumers.
The president noted that prevailing oil prices are around 90 dollars per barrel in the world market and expressed fear that prices may cross 100 dollars per barrel in near future owing to huge purchases by China and India He said that the government has decreased margin of oil companies in December and reduced petroleum levies. Hopefully this time same formula may have been applied, he added.
He was of the view that all present economic ills are the result of short vision of past policy markers about future and adoption of unrealistic policies. Regarding power crisis in the country, he said that all the power-generating units are old and based on obsolete technology and operating on very low efficiency. He said that demand of electricity is increasing by around 5 percent per annum and IPPs are not operating on full capacity. Transmission losses are 35 percent in Pakistan whereas in other countries it is not more than 10 percent.
The president said that industries could not run under present circumstances where power and gas loadshedding duration range from 12 to 14 hours. Siddiqui emphasised the need for the government to define its long and short-term goals. The president was of the view that government can not overcome its problems without increasing tax generation. Inflation has crossed 20 percent. Country is slowly moving towards hyperinflation, which is extremely dangerous for the country, he added.