LAHORE: Oil Marketing Association of Pakistan (OMAP) on Wednesday rejected the Petroleum Differential Claim (PDC) system terming it as disastrous for economy.
In a statement issued here on Wednesday Chairman OMAP Tariq Wazir Ali said that government's strategy of not increasing the POL prices while relying on PDC will not only affect the Oil Marketing Companies (OMCs) but proved to be disastrous for the economy.
He also said that that OMC supports government's decision of not increasing the prices of petroleum products. He said that the that oil sector of Pakistan collects more than Rs 1,000 billion in the shape of duties, taxes and levies.
OMCs are a source of employment to more than 250,000 people who support more than 1 million citizens of Pakistan, he said adding that OMCs supply petroleum products to 9,500+ petrol pumps across Pakistan, serving people, businesses, farmers, Industries and our Armed Forces.
He expressed his fear that after the imposition of PDC it will be difficult for the OMC's that they will continue their operations. He called for ending the witch-hunt of the oil marketing companies (OMCs) saying it was increasingly becoming difficult for them to operate under the current circumstances.
He concluded by saying that government should ensure that this subsidy is for a specific period and it should clearly mention the way of reimbursement of the amount including mark-up. The government must also ensure that this system would not affect the working capital and profitability of OMCs.
Copyright Business Recorder, 2021
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