Many petroleum cargoes are stuck at the port due to the Sindh Infrastructure Development Cess (IDC) of 1.80% to 1.85% on the total value of goods. It can further increase the costs, due to which a nationwide fuel shortage is predicted if the situation continues. Explore more about the news in the blog!
Impact of Sindh Development Cess (IDC) on Petroleum Import
The Sindh government decided to initiate a 100% bank guarantee before the import of the products to the port. Considering this, the petroleum cargoes are stuck at the port and are not allowed to enter without customs clearance. This has further threatened the nationwide fuel shortage, which will ultimately disturb transportation and other fields.
According to the Oil Companies Advisory Council (OCAC), almost five major petroleum cargoes, including PSO and Parco, are stuck. Not just this, but the OCAC also mentioned that if the situation continues, it will take longer for the country to recover from the loss and maintain a normal supply.
Final Verdict
To sum up, the Sindh Government demands a bank guarantee for the import of petroleum, and due to this, many tankers have been stuck at the port. As a result, there are fears of a nationwide fuel shortage, which might disturb the country’s economic wheel. The OCAC predicts an increase of Rs. 3 per litre in petrol price, impacting the overall economy. Furthermore, the fuel shortage will impact the transport, agricultural sectors, and more.
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