Petroleum dealers accused of fleecing customers

12 Jan, 2010

Petroleum products filling station are accused of fleecing the customers by over charging Rs 1.20 to 1.50 per litre in Multan and other parts of southern Punjab. On the contrary, Pakistan State Oil-controlled filling stations were charging actual prices. Petrol pump owners said that they were paying extra freight because of oil supply from Mehmoodkot instead of Shershah oil depot.
Meanwhile, the Oil and Gas Regulatory Authority (Ogra) has found serious foul-play by the owners of over 100 petrol pumps of the country, involving at least two federal ministers and some others belonging to the ruling party and associated with the government, for overcharging and other deficiencies.
The Ogra inspected hundreds of petrol pumps throughout the country randomly on December 31, 2009 and January 1, 2010 and over 100 pumps were found either overcharging or not having the stock or selling to specific customers. Well-placed sources in Ogra told this correspondent that a high-level meeting was held in the Ogra's Chairman office and it was decided to serve-show cause notices on all these petrol pumps for the imposition of penalty.
The meeting also covered the legal matters regarding serving of the show-cause notices, apprehending any possible escape-way for the players. "The Ogra is likely to conduct a press conference regarding the issue in a day or so," said the sources. "The random inspection of petrol pumps could not be done in Multan, Dera Ghazi Khan, Bahawalpur and Karachi," said the sources.
Despite a substantial decrease in petroleum prices, both in the international and local markets, lubricant dealers are over-charging from the consumers on the prices of engine oil. The petroleum prices have come down from 150 dollars per barrel in the international market during the last couple of years.
The government has also reduced the prices of petroleum products. But, oil companies operating in the country did not pass on the reduction in prices to end-users in the country. They have turned blind eye towards reducing prices of engine/mobil oil, depriving consumers from the benefit of reduction in petroleum prices, particularly in the current high inflation phase.
Prevailing prices of superior quality lubricant are Rs 1,540, Rs 1,150 and Rs 310 for a bottle of four-litre, three-litre and one-litre respectively. While Rs 1,260 and Rs 955 are being charged for four-litre and thee-litre, which is ranked in the "simple" category, standard engine oil is being sold at Rs 1,120 for four-litre bottle and Rs 840 for three-liter.
Shahid Aziz, a car owner complained that oil dealers were not willing to bring down lubricant prices despite its downward trend in the international and local markets. He said when the argued with the owners at petrol pumps about the prices of engine/mobil oil, they were of the view that "what can we do when companies are not willing to reduce these." Another consumer, Fakharuddin Siyal said: "The government should intervene and save the consumers from this injustice."
He said when affects of increase in its prices were passed on to consumers, then why the benefits of decrease were not transferred to the motorists. Several consumers in the two cities of Rawalpindi and Islamabad have also demanded of the government to take prompt action on the issue to ensure substantial decrease in the prices of engine oil. When tried to contact concerned officials in the petroleum sector, no one was available to comment on the issue.

Read Comments