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Fuel shortage starts to hit petrol pumps
By Saad Hasan

KARACHI: Refineries and oil marketing companies (OMCs) will meet in two days to review a demand of oil suppliers who have threatened to halt operations across the country if transportation fares are not increased, officials told The News on Monday.

Members of the All Pakistan Oil Tanker Owners Association (APOTOA) have already stopped carrying crude oil to some refineries and supply of petroleum products to fuel pumps, they added.

“Petroleum stock is running out,” said Abdul Sami Khan, Chairman Pakistan Petroleum Dealers Association (PPDA). “For now, the situation is not good in Karachi but the shortfall will start surfacing in other parts of the country soon if the issue is not settled.”

Halt in crude oil logistics has caused at least one refinery to consider stopping refining operations. M Wasi Khan, CEO of Bosicor Pakistan Limited, said the refinery has not received supplies for the past two days.

The APOTOA is seeking revision in transportation fares following increase in diesel prices during last month. They say that fares should be adjusted along with diesel prices.

“Everyone is charging more because of the increased cost,” said Yousuf Shahwani, Chairman APOTOA. “We should be allowed to do the same.”

He said the members of his association have stopped supplying petroleum products to pumps and the strike will continue until their demand is met. “No one has approached us for any negotiations.”

Country’s largest marketing company PSO has also started facing problems due to the ongoing strike of transporters, company officials said.

However, the Ministry of Petroleum is reluctant to bow down to the transporters who have in the past, on a number of occasions, adopted the same pressure tactics to get their demands heard.

Shaukat Durrani, spokesman for the ministry, played down the complete-strike threat, saying transporters have been raising this issue for the last few days. According to industry officials, an increase in transport fares will reflect in retail prices of petroleum products. The fares, which are reviewed on quarterly basis, were increased on April 1 by 8 per cent over January rates.

“APOTOA now wants these fares to be reviewed and revised on fortnightly basis,” officials at the Oil Companies Advisory Committee (OCAC) said. “We will meet in two days and decide what to do.”