APL clarification

07 Sep, 2010

Apropos a Business Recorder news item dated September 02, 2010 claiming Defence Purchase Department (DPD) terminating the contract with Attock Petroleum Limited (APL) under which the latter supplies Diesel (HSD), Kerosene (SKO) & Petrol (PMG) to armed forces, we (APL) would therefore like to clear ambiguities and put the record straight.
"As for the resources we would like the august readers to know that APL is fully equipped with regards to its supply infrastructure and our capacity to cater to the demand of armed forces nation-wide is second to none. Needless to mention that APL is part of the only fully vertically integrated Oil Group of Pakistan and therefore we are more than capable to provide the requisite support to our armed forces in comparison to any other OMC.
"APL has been awarded the contract by DGP-Army to supply 27 Million Liters SKO, 95 Million Liters HSD & 14 Million Liters PMG for the fiscal year 2010-2011 at various locations nation-wide.
"Out of the contractual quantities the Army has already placed orders of 4350 Kilo Liters (KLs) on APL for all LOG Areas. Here, it may be noted that till date APL has completed 50% of the total order received and APL endeavours to complete the remaining quantities in line with the contract. All orders received from Log Areas are in-time and no delays are being faced.
"As for our supplies to Gilgit-Baltistan (GB) region, due to unprecedented floods and subsequent infrastructure destructions, the GB region has been cut off from rest of the country for almost four weeks. However, even under these tough conditions we stood by our armed forces and jointly with DGP Army took extraordinary measures to keep our supplies moving under road link disconnection scenarios. APL has also devised an indigenous supply plan in order to cater to the required supplies in consultation with Pakistan ARMY. The ISPR also supports the notion and subject BR news item itself mentions the same.
"The award of contract to APL, as mentioned in the news item for a meager price differential of Rs. 0.13 is also incorrect and; therefore we would like to inform all concerned that for all three products that APL is supplying to armed forces in GB region, the average price differential is upto Rs. 3.50 lesser on per liter basis when compared to PSO quoted prices during the award of contract. "We once again reiterate our firm commitment to make consistent and steady supplies to our armed forces nation-wide. Moreover we strongly believe that DGP Army does not have any intention to scrap this contract."

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