Due to the diminished demand amid COVID-19 pandemic the oil and gas sector is facing huge losses every day and are on the verge of shutdown.
The oil and gas exploration sector is also under a lot of economic pressure. The estimated loss to this sector is Rs 7.579 billion on account of reduction in sales and Rs 947 million on royalty on oil and gas.
The refineries are facing inventory losses of about Rs 1 billion per month due to reduction in demand of petrol and diesel fuel in the country
The Pakistan Refinery Limited has suffered Rs 5.08 billion loss in nine months, whereas National Refineries posted Rs 8 billion loss and ARL’s inventory loss was recorded at Rs 3.3 billion.
Refineries had previously submitted a proposal for up-gradation for which incentives were also sought from the government but under the current circumstances the refineries informed that up-gradation is totally irrelevant at this juncture as they are not even able to survive with current level of losses.