Rs180b cess demand jolts oil industry

The oil crisis in the country may deepen as the industry faces possible collapse due to claims of Rs180 billion on account of the Sindh Infrastructure Development Cess (SIDC) imposed by the Sindh government on petroleum product imports. The Sindh government on Tuesday released one oil cargo of Pakistan State Oil (PSO) that had been stuck at port over the SIDC issue. Now, the provincial government is seeking guarantees from PSO and other oil marketing companies (OMCs) of infrastructure cess payment for the release of further oil cargoes. The Sindh government and the oil industry have been locked in a dispute over the imposition of SIDC since 2021. According to oil industry officials, the Sindh government had imposed the infrastructure development cess on petroleum product imports in 2021. However, the oil industry obtained a stay order from the Sindh High Court.