KARACHI: State Minister for Petroleum Musadik Malik has said that the federal government has introduced bonded bulk storage policy in a bid to curb the illegal hoarding and ensure smooth supply of petroleum products in the country.
Addressing a press conference, the state minister said hoarders stockpiled fuel at illegal storage points whenever petroleum prices were going to increase in the country.
“Today I am presenting a solution to end the practice of hoarding,” he added.
He said that bonded storage policy will ensure smooth supply of petroleum products and end the practice of illegal hoarding.
“Now the world’s biggest traders will not be able to [illegally] hoard oil in the country,” he remarked.
Under the policy, he explained, the foreign companies doing legal business of oil from around the world could construct bonded warehouse for oil storage in various major cities and it would not only bring in foreign exchange reserves to Pakistan but also ensure all the availability of petrol and diesel in the country.
It would also break the monopoly of a few oil marketing companies, which used to create artificial shortage of oil in the country on various pretext, and also discourage illegal hoarding of oil to gain more profits, he added.
The minister said the government was taking appropriate and comprehensive measures to maintain or gradually lower the prices of energy including petroleum, gas and electricity.
Malik added that foreign companies which stored petroleum and diesel in the bonded warehouse, would definitely get themselves registered here in Pakistan and would have to open their business accounts in the local commercial banks.
Consequently, it would resolve the issue of LCs (letters of credit) confirmation as these companies would make business transactions in dollar or in rupee directly through banks and in a way, it would also release the pressure on country’s foreign reserves exchange and create a little bit space for the government in making various payments, he said.
He further said that this initiative would also do away with LCs charges, which so far were being passed on to the end consumer.
The state minister asserted that it would be a great relief and facilitation for the small filling stations which faced even more problems during shortage of oil, and now they would be able to continue their business after buying oil from the bonded warehouses.
His statement comes as the Economic Coordination Committee (ECC) of the cabinet approved “Bonded Bulk Storage Policy 2023” for petroleum products, Finance Minister Ishaq Dar said on Wednesday.
