KARACHI, Feb 9: Smuggled Iranian petrol and diesel is being sold freely at Rs9-14 and Rs7 per litre lesser than the local official prices of these commodities in various localities of the city like Baldia Town, Manghopir, Surjani Town, Orangi, Lyari etc.

The Oil Marketing Companies (OMCs) - PSO, SPL etc., - and their licenced dealers have taken up the matter and held several meetings with senior officials of Police, city government and federal government, but the number of illegal oil stations (dubbed as dabba stations) continue to flourish.

Some transport owners who carry essential items from upcountry to Karachi have also started using the smuggled diesel and petrol to save their cost of transportation.

Even many car owners go to Hub Chowky and return back with full tank of smuggled fuel besides carrying petrol in big cans and drums.

Pakistan Petroleum Dealers Associations (PPDA) has identified existence of over 200 dabba stations in the city which are selling smuggled Iranian oil despite the fact that FIRs have been registered against them to check their illegal activities but so far no progress has been achieved.

The OMCs have deplored that the concerned authorities seem reluctant to take any action against illegal operations of these dabba stations as the number of such stations continues to thrive with each passing day.

Iranian petroleum products are highly subsidised and that is why they are being smuggled to Pakistan where prices of these products are much higher. One and half years back the smuggled Iranian petroleum products were available in abundance in Balochistan and NWFP only, but now these products have also found their way to Karachi.

PPDA Chairman Abdul Sami Khan said that during the last six months the arrival of Iranian petrol had picked up, otherwise only diesel had been coming in higher quantities.

Iranian petrol is easily available in the city at Rs40-45 a litre while diesel is cheaper by Rs7-8 per litre as compared to official prices.

He said that the association had provided all evidences and pictures to the concerned government departments which took some action half-heartedly like uprooting of some dabba stations.

“But these stations re-emerge after a month or few days as the government departments are not taking any serious measures to contain the proliferation of this illegal business,” he added.

He said these dabba stations were also damaging for the environment as petroleum products were being stored without any safety measures, which is also a threat for the lives of people handling these products in a totally non-professional manner.

Mr Sami said the main reason for thriving of this trade was that no big investment was required for starting this illegal business.

“They spend just few thousand rupees for acquiring NOC/permit from DCO Office or Explosive Department for storage of oil products and misused these permits for installation of stations/depots. They have full support and shelter from the Police in addition to some more government departments,” he explained.

He further said that it was hard to give the real damage in sales of petroleum products of licenced stations but it was one of the main reasons for eating up the market share of OMCs.

Sami said that some new marketing companies were also a source of supplies to these dabba stations because they obtain 90 per cent of their requirements from the OMCs and 20-30 per cent through smuggling of the petroleum products.

External Affairs Cluster Manager Shell Pakistan Limited Abid Saeed Ibrahim said that the matter had been taken up by the Oil Companies Advisory Committee (OCAC) at various levels but so far no action had been taken.

The consumption of petrol has been on decline following massive rise in its price in the last few years. Besides, fast conversion of vehicles to CNG has also hit petrol sales.