Foreign energy suppliers, including Chevron and Vitol, are reconsidering their plans to store and trade fuel in Pakistan due to the current policy framework. Both private and public bonded warehouses in the country are facing hesitation from these suppliers.
A working paper, which will be reviewed at a Petroleum Division meeting on August 29, 2024, indicates that the reluctance of foreign companies to establish a physical presence in Pakistan stems from concerns over the country’s investment climate. Although suppliers like Chevron and Vitol initially showed interest, they are now uncertain about moving forward under the present conditions.
The policy was originally designed to enhance fuel availability for smaller oil marketing companies (OMCs) in Pakistan. These OMCs have struggled with sourcing fuel from local refineries and importing it, facing multiple obstacles along the way.
