Oil crisis: Probe committee recommends strict action against 9 OMCs.

Byline: Fawad Yousafzai

ISLAMABAD -- The committee probing the oil crisis has recomAmended the government to take a punitive action against nine oil marketing companies (OMCs) for violating their licence terms and conditions and if the oil supply doesn't improve within a month then their licences should be cancelled .

In its interim report on black marketing, and hoarding by OMCs, the committee said that durAing the oil crisis the sales of SPL, TPPL, APL, AOPSL, BYCO, GO, Hascol, Puma, and BE dropped substantially and recommended that a necessary punitive action should be taken against them.

The federal government had constituted a comAmittee, under DG Oil on June 8 to monitor and verify stock availability, and identification of black marketing, and hoarding by OMCs.

As per OCAC record, PSO has significantly inAcreased its market share at the time of fuel crisis. Their Keamari Terminals are operating round the clock for last two week.

Confirmed COVID-19 cases surge to 165,062 in Pakistan

GO Petrol stocks were 54,000 MT at Keamari and PQ, during April 2020, GO market share reAmained 9.30 to 14.0% whereas decreased to 11.2% during 1/6/2020 to 10/6/2020 (time of fuel crises). Owing to huge stocks and prevailAing situation, GO must have pushed the product in the market, which they failed. Whereas HSD share dropped from 10.7% (May 2020) to 8.3% (1-10/6/2020).

HPL Petrol stocks were 43,000 MT at Keamari and PO, during April 2020, their market share has been significantly decreased from 10 3% to 7.6% during fuel crises period. HPL had sufficient stocks available with them and they could have pushed the product in the market to ensure conAtinuity of supply of POL products to end customAers and to avert dry out at their stations, which they have failed as they have been found guilty of product hoarding, I-e. which had encouraged black marketing of petroleum products in the country. Moreover, HSD share also dropped from...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT