KARACHI, Feb 16: As many as 200 illegal oil depots are operating in Karachi where petrol and diesel are said to have been sold at Rs2 to 4 per litre cheaper than what the three oil marketing companies (OMCs) retail at their outlets.

People engaged in this illicit business activity have set up illegal outlets/pumps/oil stations, etc., in the city's peripheral areas and number of such type of depots are multiplying with the passage of time.

Pakistan Petroleum Dealers' Association (PPDA) and Oil Companies Advisory Committee (OCAC) have made a joint effort by sending the list of such illegal depots with some pictures to the City Government's higher ups for taking legal action but so far to no avail.

Chairman PPDA, Abdul Sami Khan said that the government was losing millions of rupees in respect of income tax, general sales tax and other levies every month due to these illegal depots besides affecting the country's economy.

The adulterated petrol and diesel also damaged Vehicle engines. He said that persons running these depots had also installed dispensers to sell petrol in diesel in little quantity and they also offer oil products in bulk in 200 litres drums.

He said that many people in this business are using tankers as their storage tanks that are filled with thousands of litres of petrol and diesel, while many people have kept the oil products in huge underground tankers.

Even smuggled Iranian diesel was also selling in some outlets or it was being mixed with other products so that it cost lower by a few rupees as compared to oil products of PSO, Shell and Caltex, he added.

"We have brought the matter in the City government notice so that they take stern action against the people involved in this crime," an executive of an oil marketing company, who declined to be named, said adding that Iranian smuggled diesel and petrol are selling openly in various parts of the country as it is cheap as compared to oil being sold by the PSO, Shell and Caltex dealers.

Sami Khan said that he had been sending reminders to city government for the last one year when there were only 50 such illegal outlets and depots but it seems that the authorities are least bothered to take any action.

"We will now talk to Governor Sindh and Chief Minister of Sindh next week, hoping that they will address our problems and issue orders for winding up of such illegal depots," he added.

The meteoric increase in petroleum prices in the last few years have given birth to such illegal activities as people are now bound to fill cheap and mediocre quality of petrol and diesel in their vehicles since petroleum products' prices are now getting beyond their reach.