May 09, 2008	Friday	Jamadi-ul-Awwal 3, 1429

KARACHI, May 8: The petroleum dealers have started a new practice of suspending sales or shutting down their outlets ahead of any oil price-hike made by the government to make quick financial gains.

As soon as the government alarms consumers about any fresh move for a price-hike a few days ahead of the actual announcement, the petrol stations literally start punishing people.

Many consumers faced hardships, especially in the interior of Sindh and some parts of Punjab when on previous fortnights they found the retail outlets closed on the day of announcement of petroleum prices, and dealers told them that they have run out of stocks. This is even witnessed in Karachi in many areas.

Pump stations usually have a maximum storage capacity of 15,000-25,000 litres in their underground tanks in cities while the highway petrol stations’ storage capacity is 35,000 litres.

Smelling a sharp increase in prices, clever pump owners have also been demanding higher supplies from oil marketing companies (OMCs) as against their normal supplies, but OMCs usually provide them normal supply instead of bulk.

Although the Pakistan Petroleum Dealers Association (PPDA) has received a number of complaints, it is yet to take an action.

Mr Kamal Akhtar Siddiqui, who is general secretary of the Karachi Wholesalers’ Poultry Association (KWPA), describing the agony he suffered, said he could not get diesel at petrol pumps in Tando Mohammad Khan for the whole night of April 30, and said that petrol stations started delivery on May 1.

A resident of Gulistan-i-Jauhar said he faced the problem when petrol station officials near Safari Park said they did not have any petrol in the afternoon.

The same was the answer at another petrol station on University Road.

PPDA chairman Abdul Sami Khan tried to defend the situation by saying that he had issued warnings to petroleum dealers involved in this racket.

“In case they are found doing the same, they will be blacklisted and action will be taken,” he said.

He blamed ministers for creating a panic-like situation after issuing statements a few days ahead of the original date of the announcement.

He, however, said there was a possibility that petrol stations might have gone dry in many areas as consumers, after hearing shocking news of increase in petrol prices, throng outlets in larger numbers to fill in their fuel tanks.

On the next day of the announcement, the sale falls sharply.

He said the OMCs are bound to supply diesel and petrol by 10pm on the day of the announcement, but some OMCs stop supply by 4pm.

Even many OMCs start short supply of diesel and petrol to dealers two to three days ahead of the POL price announcement.

Mr Sami recalled that pumps cannot charge higher prices ahead of 12am (the day of the announcement) and even they cannot suspend sale on their own.

An official of the Pakistan State Oil (PSO), who asked not to be named, said the company had some reports of dealers involved in suspending supplies on the day of the announcement to make quick gains.

However, he said he cannot tell how many pump owners, having franchise agreement with the PSO, had been issued warnings or have faced any legal action.

He added that a pump owner can loose a franchise of the PSO.

The PSO has a total of 50 COCO sites (company owned and company operated) all over the country which cannot be closed in any circumstances.

The total number of pumps, including the franchise dealers, is 3,700.