Private oil companies behind petroleum crisis: Report

ISLAMABAD: The preliminary report on the petrol crisis has held private oil companies responsible for the petroleum crisis in the country.

According to the report, private oil companies responsible for black marketing and hoarding of petroleum products.

The investigation committee has also recommended severe action against the private oil companies for installing dangerous storage tanks for petroleum products near private oil terminals to store oil.

In the crisis on PSO’s oil terminals were operating 24 hours a day during the crisis, adding that its market shares before the shortage in supply ranged between 32 to 36 percent, the report added.

Although, the increase in the supply of oil during the petroleum shortage in the country, augment its market share to 54 percent. The report added that the three private companies against whom cases have been filed had a large piece of the market share which declined during the petroleum crisis.

Earlier, authorities have fines six oil companies for petroleum crisis, the government fined six oil marketing companies (OMCs) with Rs 40 million for their non-compliance with storage requirements, bringing to an end a month-long blame game after an adverse shortage of petrol and diesel amid the lockdown in the country.

According to the Oil and Gas Regulatory Authority (Ogra, Total Parco and Shell Pakistan were each fined Rs10 million, while Attock Petroleum, Hascol and  Puma, Gas & Oil Pakistan were handed Rs 5 million fine each.

Ogra in its report on the petrol crisis said three show-cause notices were also issued to OMCs, including Byco and BE Energy. It added these OMCs were found involved in a violation of their licenses and ordered to pay the penalty within a month.

OMCs could file review petition only after paying half of the penalty, the regulator said. The authority warned OMCs of further penalties if they could not improve the supplies at their outlets across the country.

The Oil Companies Advisory Council, an informal body representing the downstream oil industry, declined to comment on the next line of action.

Ogra’s decision followed show-cause notices issued on June 3 to the OMCs to explain their position regarding the availability of petroleum products at their retail outlets. The petroleum division of the energy ministry also constituted a committee to probe into the shortage of petrol and diesel.

On June 9, expressing serious concerns over the ongoing artificial shortage of petroleum products across the country, Prime Minister Imran Khan had ordered strict action against those behind it.

Presiding over the federal cabinet meeting, PM Imran had expressed concern over the artificial shortage of petroleum products being created in the country by oil marketing companies (OMCs) and petrol dealers, adding that no mercy would be shown to the elements found guilty of fuel shortage.

The prime minister had directed the minister for petroleum and OGRA to ensure that every oil marketing company (OMC) maintains 21 days of stock to meet its license conditions. He also directed that the Petroleum Division and OGRA take all actions necessary to ensure regular supplies within 48-72 hours.