In order to increase its storage capacity, Byco Petroleum Pakistan Limited (BPPL) is planning to develop new storage facilities at MehmoodKot, Machike and Shikarpur. The land procurement is in final stages for proposed Machike and MehmoodKot Terminals. This was disclosed by Byco spokesperson while talking to Business Recorder on Wednesday.
Talking about the news items appeared in local media about suspension of Oil Marketing license of a number of OMCs including Byco Petroleum Pakistan Limited (BPPL) due to failure in maintaining prescribed POL stocks in the country, the spokesman said that no official letter from Ogra suspending the Oil Marketing License of Byco has been received so far.
However, a show cause notice was received in this regard and we have responded to the Director General (Oil), Ministry of Petroleum and Natural Resources through which we have requested for the withdrawal of the proposed notice for suspension of BPPL's oil marketing license in view of the efforts underway by BPPL to enhance its POL storage infrastructure in the country, he added.
It is pertinent to note that in view of the ever-growing demand of petroleum products, the BPPL is working towards development of more storage infrastructure in order to bring efficiency in distribution of products to its valued customers. In addition to the infrastructure development, we are also strengthening our product availability arrangements to ensure consistent supplies to our growing customer base, spokesman added.
Moreover, our future infrastructure development plans and our continuous pursuit to enhance our storages (specifically during the recent product availability crises) not only to comply by our marketing license requirements but to stream line our products availability are underway.
Spokesman said that Byco's existing Mogas and HSD Storage arrangements of 32,600 MT, based on average sales, are sufficient for a stock cover of 78 days in Mogas and 49 days of HSD. Overall our storage arrangements are in excess of 106,000 MT, the highest among the new oil marketing entrants, as well as among the highest in the industry, he explained. However, storage infrastructure development involves number of permissions from the government authorities and a substantial amount of time is taken by the relevant authorities in granting such permissions.-PR
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