Ship bunker industry neglected despite fetching over $900 million forex: PBA demands 'petrol pumps' status

The bunker suppliers, who claim to be one of the country's largest industries by annually contributing foreign exchange of over $900 million to the national kitty, are demanding the status of 'floating petrol pumps' for their barges.
According to industry sources, Pakistan Bunker Association (PBA) has sent a letter to the Federal Board of Revenue (FBR), demanding that some 25 to 30 barges, owned by at least 15 bunker companies, should be declared as 'floating petrol pumps'.
In pursuance of its demand the Association cited the example of local fishing boats, which are fuelled by the barges having a legal status of floating petrol pumps, they added.
"We have sent a letter to the FBR requesting that our barges be given a legal status of floating petrol pumps," Chairman of PBA Arif Zaman told Business Recorder. He confirmed that he had sent a letter to the FBR over a week ago and was waiting for a positive response from it.
According to the PBA chief, if accepted, the move would entitle the bunker suppliers to facilities, like commission, etc, enjoyed by the fuelling stations outside the ports.
Zaman contended that PBA barges had all equipment required for floating fuelling facility like delivery pumps, bowers, etc.
Terming bunker industry as one of the largest in country, Zaman said some 15 member companies of the fast-expanding PBA were supplying at least 25,000 to 30,000 tonnes of fuel monthly to the foreign ships calling at local ports, namely Karachi Port, Port Qasim and Gwadar Port. He said the bunker products include furnace oil verities like IFO 180, IFO 380, Marine Gas Oil and Marine or Light Diesel.
He said that whereas each of the 15 companies was contributing a monthly foreign exchange of millions of dollars to the national exchequer, the industry was long neglected by the government in terms of importance and incentives.
The PBA chairman said the government should provide this potential industry with maximum incentives to enable it offering bunker rates more competitive than that of other regional ports in India, Dubai and Singapore.
"This money-making industry has not been recognised internationally in a way it should be," Asif, General Secretary PBA, told Business Recorder.
He said during 2008-09 the industry's supplies stood at over 0.18 million tones valuing around $900 million. Asif complained that the government never paid due attention to the sector as an awareness campaign should have been launched through seminars etc. "A lot of work needs to be done," he said.