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Pakistan: Petrol Retail Dealers Highlight Fuel Delivery Shortages

Print E-mail
Monday, 30 June 2008
Petroleum dealers reiterated complains of shortage of mogas and diesel at petrol pumps and alleged that majority of the Oil Marketing Companies (OMCs) are not supplying products at their fixed quota.
They said that some OMCs have stopped supply to their affiliated service station dealer network by almost 50 percent in interior Sindh, Punjab and NWFP over the last week.  A number of these dealer sites have now run dry.

President Pakistan Petroleum Dealers Association (PPDA), Abdul Sami Khan explained that the demands of petrol and diesel will not be met properly until all OMCs resume their full fuel supply to the petrol station networks . He alleged the petroleum supply has been decreased by Shell, Total, Admore leading to a
crisis-like situation, particularly in rural areas. In the big cities, petroleum dealers have arranged oil products mutually for the pumps facing fuel shortage, but this assistance is not sustainable if the current situation prevails and metropolis particularly Karachi may face petrol crisis in the coming days, he added.

"There are around 20 to 25 petrol pumps in Karachi facing shortage of supply for the last couple of days, but the association have maintained cooperation with its members by maintaining supply to them," Mr Khan informed.

PPDA chief brushed aside allegations that petroleum dealers are involved in black-marketing, hoarding and smuggling of the petroleum products and said that the association would take stern measures against any dealer involved in such activities. Mr Khan demanded the government should strict borders¹ vigilance to stop smuggling of the petroleum products from NWFP to Afghanistan. The NWFP is facing shortage of diesels at retail outlets of different OMCs because diesel is being smuggled to Afghanistan at Rs75 per litre, while in Pakistan it is sold at Rs 50.20 per litre.

On the other hand, official sources in Pakistan State Oil (PSO) told the supply condition will be improved soon at its petrol pumps particularly because the oil marketing company has acquired 55,000 metric tonne diesel
  and 30,000 metric tonne mogas will be obtained by 25 June.
 
Official added the state-run OMC is also providing fuel products to even those petrol pumps that are affiliated with other OMCs, resulting the oil shortage have emerged in its own petrol pumps. He informed that the overall market share of PSO has increased to 71 percent in current month as compared to 59 percent in the previous month, as it is supplying products to petrol pumps of other OMCs.
 
There are around 4,500 petrol pumps in the country while the state-own oil marketing company operates around 3,600 retail outlets in different cities.  Spokesman of Shell Pakistan Limited, Abid Syed Ibrahim rejected allegations made by petroleum dealers and said the OMCs are continuously providing fuel supply to its all affiliated dealers.  He clarified that the supply of very few petrol pumps is halted by OMCs in the country. "Some dealers are not paying our bills so their fuel supply was stopped while supply was also discontinued temporarily to those petrol pumps that are undergoing technical maintenance," he added. Besides PSO and Shell, there are seven OMCs functioning with networks in the country.
 
PetrolWorld 250608 
 
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