ISLAMABAD: The preliminary report on the petrol crisis has not only held private oil companies responsible for black marketing and hoarding of petroleum products but it has also found violations of safety rules of storing POL products. The finding has highlighted a sudden decline in the shares of oil marketing companies (OMCs) dropped during the petrol crisis period from 1-10 June, 2020, as compared to May 2020.
Market share of government-owned Pakistan State Oil (PSO) increased from 32-35.7 percent to 54 percent during the petrol crisis period.
The report added that the three private companies against whom cases had been filed had a large piece of the market share, which declined during the petroleum shortages.
In its initial findings, the joint investigation committee has recommended that strict action be taken against oil companies for installing dangerous "storage" tanks for petroleum products near private oil terminals.
The investigation committee has found variations in market shares of the OMCs during that period.
Shell Pakistan Ltd's (SPL's) share dropped to 6.1 percent in the first 10 days of June as compared with May, when it was recorded 10.2 percent.
The share of the TPPL dropped from 13.8 percent in May to 10.2 percent in June.
The share of APL dropped from 9.0 percent to 6.7 percent in the corresponding period.
The share of AOSPL dropped from 0.5 percent to 0.1 percent.
The share of BYCO dropped from 3.6 percent to 2.2 percent, BE's share dropped from 2.3 percent to 0.2 percent, the ANPPL's share dropped from 0.2 percent to 0.1 percent, OILCO share dropped to 0.1 percent from 0.2 percent, OILCO and LAGUARDIA's share dropped to zero percent from 0.1 percent.
As per OCAC record, GO Petrol stocks were 54,000 MT at Keamari and PQ.
During April 2020, GO market share remained 9.3-14 percent, whereas it decreased to 11.2 percent during June 1 to June 10, 2020 (the time of fuel crises).
The share of HSD also dropped from 10.7 percent (May 2020) to 8.3 percent during the crises.
The HPL petrol stocks were 43,000 MT at Keamari and Port Qasim.
During April, their market share has been significantly decreased from 10.3 percent to 7.6 percent during fuel crises.
The HPL had sufficient stocks available with them.
The High-Speed Diesel share also dropped from 8.6 percent in May to 5.7 percent during the crisis, "which seems a deliberate attempt to create product shortage."
The PUMA imported 3000 MT on May 27. Very meager dispatches of only 280 MT of petrol were recorded from May 27 to June 10, 2020.
The PUMA did not pro-actively, ex bond their import consignment of 5000 MT petrol on June 6 to dispatch the product.
The PUMA petrol market's share also dropped from 2.3 percent in May to 0.6 percent during that period.
The government observed violations of safety rules and regulations i.e. inter tank/gantry distance requirements for storing petroleum products, for storing highly combustible products at few of the private storage handling companies such as PMC, ATT, ATC, Zy&Co, Al-Noor.
Majority of these private terminals were initially designed to keep molasses, ethanol and chemicals.
Later, they managed to convert their storages into PMG and HOBC, which is a big safety hazard in case of any mishap.
The Oil and Gas Regulatory Authority (OGRA) had fined six OMCs with Rs40 million over violation of the Pakistan Oil (Refining, blending, transportation, storage and marketing) Rules 2016. Shell Pakistan and Total Parco were each fined Rs10 million, while Attock Petroleum, Puma, Gas and Oil Pakistan and Hascol were imposed a penalty of Rs5 million each. Three show-cause notices were also issued to the OMCs, including Byco and BE Energy.
Comments
Comments are closed.