Oil theft

We are perhaps a unique nation, always trying to find new ways to rob the resources of the country and enrich ourselves without any shame or regret. In fact, some of us have become so accustomed to the practice that bragging about it in the inner circles is quite common and considered an act of one-upmanship. Unfortunate though it may be, but the people of Pakistan had become familiar about the rising theft and pilferage of electricity, gas, canal water, etc, which was ballooning the system bit by bit and overburdening the honest consumers. As ingenuity has no limits, Pakistani planners are likely to confront the consequences of another criminal activity. According to a report in Business Recorder on 11th February, 2015, Public Accounts Committee (PAC) had taken notice of the media reports published in a section of the press claiming embezzlement and irregularities and asked the Ministry of Petroleum and Natural Resources to apprise the Committee about theft of crude oil from the system. However, while rejecting these allegations, Petroleum Secretary Arshad Mirza revealed that a joint investigation team (JIT) had already been set up on the complaint of MOL, an oil company, that claimed that their crude oil was being stolen from the system and the inquiry will be completed within two weeks. Another oil company had also lodged a complaint of crude oil theft in Sindh. As the matter related to the provincial government, the Ministry had written a letter to the Chief Secretary Sindh, to investigate it. Syed Naveed Qamar, a parliamentarian of the Pakistan People's Party enquired if the common man or some company was stealing crude oil. Responding to the query, DG PC explained that "the pipeline is pumping crude oil at a pressure of 1600 psi to processing units and no non-technical person can steal oil from the pipeline".
Though the nature of proceedings at the PAC were somewhat vague and did not establish the veracity of the crime absolutely, yet the very fact that such an issue was raised in the PAC and a JIT was already looking into the affair should be a matter of great concern to the government, oil companies and other relevant stakeholders. Of course, if the complaint was confirmed, it would not only tarnish the image of the country but scare away foreign investors who are already avoiding Pakistan due to a number of adverse factors and developments on the domestic front. This kind of criminal activity, probably unheard-of in other parts of the world, would give them another reason to write off the country from their horizon. Another worry is that physical damage to the existing infrastructure cannot be ruled out altogether. As explained by DG PC, a non-technical person cannot steal oil from the existing pipeline, implying indirectly that a technical person or group of persons could indulge in such a crime with or without the involvement of outsiders. Another side-effect could be the passing of the burden of revenue losses in this fraudulent activity to the unsuspecting honest consumers who would be asked to foot the bill. This has been happening in the case of other utilities and services and there is no reason why the same strategy to cover the losses would not be repeated in the oil business. Keeping all the factors in view, we would urge upon the government to analyse the problem raised by the PAC thoroughly and find a way out to sort out the issue as early as possible. While ordinary persons cannot afford to face another hit on their purse, government of the day is also least able to bear the burden of subsidies from another source. Better to nip the evil in the bud before another monster raises its head to sap our remaining resources and energies.