Private sector companies in Pakistan have resorted to import fuel from Iran due to the intensification of economic crisis and shortage of foreign exchange reserves.
Amid a reeling economic crisis and shortage of foreign exchange reserves, private dealers in Pakistan have turned to Iran for less expensive fuel as the country’s inflation rate has hit historic highs during the past few months, according to a report published by Geotv.
As a result of the weakening economy and individuals using public transit due to rising costs, local refineries were already experiencing a drop in demand, ANI reported.
In Pakistan, the average retail price of diesel in recent months was (PKR) 288 per liter, whereas Iranian fuel has been selling for as little as (PKR) 230 per liter, generating respectable profits for private dealers.
Pakistan has been prohibited from importing Iranian oil since the United States sanctions the neighboring nation’s commerce in petroleum and petrochemicals in 2013.
“Infiltration of Iranian diesel is growing and it could substitute as much as 25-30 percent of Pakistan’s total diesel sales,” a private dealer said as quoted by Geotv.
Source » tasnimnews