Fuel shortage: Bunker industry's business plunges by 80 percent

The government's delayed import of furnace oil has scaled down the local bunker industry's businesses by 80 percent, as shortage of fuel stirred worries in the industry. "Bunker industry is inching towards shut down with each passing day for continued shortage of fuel at local seaports," industry sources said on Thursday.
They said the government had delayed import of furnace oil, which resulted in fuel shortage for bunker industry to sell to foreign shipping lines arriving at the port. "Industry's business activities have declined by 80 percent in the present circumstances to mere 5,000 metric tonnes against the 25, 000 metric tonnes earlier," they added.
They said that the international shipping lines had begun veering to other seaports for fuel from Pakistan because of the country's primary industry had reduced supplies. As a result, they said, the local fuel providers had lost huge foreign orders.
The fuel shortage is likely to compel small-sized companies to resort to lay off, said General Secretary Pakistan Bunker Association (PBA) Malik Asif Zaman Khan. He added, "the move could be dangerous, as a large number of unemployed youths are already struggling for jobs." Expressing apprehensions, he said the fuel shortage to bunkers was compelling the global shipping lines to seek other seaports, leaving the local providers at the risk of financial collapse.
"The present fuel shortage is taking a sizeable foreign exchange away not only from local industry but also the national kitty," Asif said, adding that the government should take measures to overcome the shortfall. The PBA General Secretary said the unavailability of the two important grades of fuel made the shipping companies sail towards other regional seaports to cater to their fuel needs.
The shortage of IFO 380 centistokes (cst) was already costing the local bunker industry at least $34 million annually, Asif said. He asked the concerned ministry to take brisk action to improve fuel supply to the industry on an emergency basis so that the bunkers could resume their activities at a full-scale.