PPDA protests against ‘hoarding’ by OMCs

28 Jun, 2024

KARACHI: The Pakistan Petroleum Dealers Association (PPDA) is agitating against the hoarding of fuel supply by the oil marketing companies operating in the country.

“Whenever there is an expected price rise in fuel rates, these companies hoard fuel supply, causing artificial shortages and undue hardship to petroleum dealers and the general public,” said Hassan Shah, spokesperson for PPDA.

“Despite clear orders and 100 percent payments made, these companies are not releasing fuel stock, citing excuses like ‘capping’ or offering only average fuel stoking instability in the in the petroleum product market,” Hassan Shah said.

He said this is a clear violation of rules and regulations. “We demand immediate intervention from the relevant authorities like the Oil and Gas Regulatory Authority (OGRA) and the Competition Commission of Pakistan (CCP).”

The Pakistan Petroleum Dealers Association has requested the OGRA chairman to intervene in the matter and direct oil marketing companies to release fuel stock to petroleum dealers.

Petroleum dealers are also meeting Senate chairman on Friday (June 28) to apprise him about the issue so that he can direct the Ministry of Petroleum and OGRA to hold inquiries into the matter at the highest level.

As soon as the news of a likely gas price hike is aired on TV channels, the customers swarm to filling stations to buy fuel. Many petrol pumps cannot satisfy the needs of the public owing to low inventories, which results in complications, he informed, he said and added that the OGRA teams should check to see if the fuel order has been placed and payment has been made before fining petrol pumps for not supplying fuel to consumers.

If the filling stations did not get oil despite advance pyments, OMCs should be penalized for suspending fuel supply, and the petroleum dealers should be spared, he demanded.

He added that OGRA should mobilize its enforcement team to ensure that all the OMCs keep their retail outlets wet and well-supplied with petroleum products.

Copyright Business Recorder, 2024

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