ISLAMABAD, Jan 16: Oil companies have warned the government of a serious diesel supply crisis in March-April because of their inability to order fresh shipments.

Sources said the ministries of petroleum and finance had been informed that the companies could not place tenders for diesel import because of cash problems. Tenders for March and April, when the Kharif season would be in the maturity stage, ought to be made in January and February.

“Unless substantial payments against government liabilities on account of price differential claims are made, the oil companies would not be in a position to import diesel for peak Kharif season,” an executive of an oil firm told Dawn.

The sources said the companies’ stocks would not last more than 15 days because of an expected impetus in electioneering after Ashura, unless fresh shipments were lined up.

The country imports an average 550,000 tons of diesel per month but a nine per cent increase in consumption is anticipated because of election activities.

The shortage in March and April could cause damage to the Kharif crops when they needed watering for maturity, the sources said. Tube-wells which mostly run on diesel have a substantial role in irrigation in several parts of the country.

The sources said the government’s Wednesday decision to maintain the existing petroleum prices would add about Rs9 billion per fortnight to the price differential claims payable to the oil companies. The amount estimated on Jan 31 was Rs55 billion.

Finance ministry sources said a Rs20 billion syndicated loan arranged by the government for payment to the oil companies had not been released because of a mandatory scrutiny by the State Bank and replacement of Habib Bank as the lead banker by the National Bank. “The approval of the cabinet’s economic coordination committee is there but payments have not been made to the oil companies,” an official said.

The government claims bearing an additional burden of Rs2.75 per litre on petrol, Rs17.90 on kerosene and Rs16.30 on light diesel oil by keeping the prices unchanged.

However, the inland freight margin charged to the consumers has been increased from Rs2.45 to Rs3.93 per litre on petrol, Rs4.63 to Rs7.34 on HOBC and Rs2.80 to Rs4.22 per litre on kerosene.