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Fuel crisis looms as oil tankers go on indefinite strike

MM News Staff by MM News Staff
June 24, 2021
Reading Time: 2 mins read
All Pakistan Oil Tankers Contractors Association (APOTCA) announced a strike. Source: FILE

All Pakistan Oil Tankers Contractors Association (APOTCA) announced a strike. Source: FILE

KARACHI: The All Pakistan Oil Tankers Contractors Association (APOTCA) has announced a strike from Thursday (today) and suspended the supply of petroleum products for an indefinite period.

The strike has raised concerns over a shortage of petroleum products at petrol pumps that receive the supplies through the oil tankers from depots of oil marketing companies (OMCs) set up across the country.

It must be mentioned that All Pakistan Oil Tankers Owners Association has distanced themselves from the strike. However, APOTCA President Abidullah Afridi denied rumours that they have called off the strike and said they would remain on strike until their demands are fully met.

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He also said that the oil tankers contractors and owners have upgraded their vehicles to transport oil supplies from Karachi other parts of the county, but OMCs have laid White Oil Pipeline from Karachi to Punjab to transport oil.

He demanded 50 percent quota in the White Oil Pipeline (WOP), which means that oil marketing companies should dispatch half their supplies through roads and rest through the pipeline. It has been reported that OMCs are dispatching 60 percent diesel supplies through the pipeline and the rest of were being supplied through tankers.

Petrol pumps usually stock oil for 2-3 days in Karachi while it takes four to five days to transport oil through tankers to the upcountry. There are some 15,000 tankers supplying petroleum products nationwide.

The association is also demanding a reduction of tax rate on oil transportation and fixation of queue system at oil storage facilities. They said the government had promised to cut the tax rate to 2 percent in the budget from 3 percent which has not been implemented. They also urged to fix the queue system at oil storage facilities as tankers belonging to influential people are given priority while others have to wait for long durations.

OMC said denied that the role of oil tankers in the supply chain is being reduced and would continue to supply oil to petrol pumps from depots. They said all oil is not supplied through the pipelines and tankers would still continue to remain part of supplies from Karachi to other cities.

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