SAHIWAL: Shortage of diesel has been persisting at local filling stations since May 1.

The shortage is the result of the federal government’s decision to reduce the diesel prices by Rs27 per litre in line with reduction in international petroleum prices. This shortage is mostly hitting rural communities where diesel stocks are coming to petrol pumps after two days.

The farmers are feeling difficulties in harvesting their wheat crop, says Chaudhry Rizwan Iqbal, provincial president, Pakistan Kissan Ittehad. He says the petroleum companies were aware of price reduction beforehand so they immediately disposed of their diesel stock at previous prices before May 1.

“They supplied maximum quantity and disposed of their stock. This later generated shortage in diesel supply chain after April 25,” he says.

A representative of the All Pakistan Petrol Pump Dealers from Multan region told Dawn that under rules, the supplying companies must have 40-day quota at hand but most companies exhausted their stock because they had knowledge of price reduction.

Published in Dawn, May 16th, 2020