ISLAMABAD: Senate Sub-committee on Petroleum and Natural Resources Monday sought detailed reports from OGRA and OMCs containing action taken against petrol pumps selling substandard fuel and tempering with measurement.
The committee meeting, chaired by Taj Muhammad Afridi, directed the Oil and Gas Regulatory Authority (OGRA) and Oil Marketing Companies (OMCs) to submit the province-wise reports in next meeting. It also expressed concern that working papers for the committee meetings were not provided to parliamentarians in time and warned to avoid such practice in future.
Representatives of OGRA, OMCs and Pakistan State Oil (PSO) apprised the committee that they have a mechanism to regularly check the quality and quantity of fuel being sold at petrol pumps, but could not give details like amount of fines imposed on how many petrol pumps in a certain period.
Representatives of PSO and Shell Pakistan said all oil tankers working with their companies had got installed tracking devices and there was no question of abuse of Inland Freight Equalization Margin (IFEM) on their part.
Basically, IFEM is the transportation cost from the refinery/ port to the oil depots and storage facilities with no profit element for Oil Marketing Companies (OMCs).
The committee thoroughly discussed the IFEM, under which special tariff was charged for far-flung areas but the supply was delivered to nearby petrol pumps or dumped at illegal petrol pumps.
Expressing concern, chairman Taj Muhammad Afridi observed that there should be an effective system of physical verification of oil depots and petrol pumps to curb any dumping.He underlined the need for an effective mechanism of checking quality and quantity of oil being sold at the dealers’ outlets.
The committee was holding discussion on a petition filed by Maqsood Ahmed Awan and Munawar Khan regarding problems being faced by the oil sector.
Senator Mir Muhammad Yousaf Badidini termed a proposal given by a representative of PSO to increase the price of kerosene oil to prevent adulteration in petrol and diesel ‘rubbish.’
Among others, Senators Baz Muhammad Khan and Mir Muhammad Yousaf Badini, representatives of PSO, OGRA, National Electric Power Regulatory Authority, Oil Companies Advisory Council, different OMCs and the petitioners attended the meeting.
