Pakistan’s circular debt blamed for petrol shortage

The severe petrol shortage that paralyzed the capital city of Lahore for days was said to be the result of Pakistan’s mounting circular debt. A survey of various areas in Lahore revealed that around 70% of the petrol stations did not have any petroleum products available. Speaking to Pakistan Today, the Pakistan Petroleum Dealers Association (PPDA) SVP Chaudhry Siddiq complained that dealers were denied petroleum products by oil marketing companies (OMCs). Citing mismanagement of Pakistan’s energy sector as the reason for the current crises, he said oil refineries could not supply products to OMCs because of cash flow problems caused by the government’s subsidizing retail prices of petroleum products. (May 27, 2011)