Misusing petroleum freight subsidy: mafia embezzled billions of rupees: PEW

Pakistan Economy Watch (PEW) on Sunday said an influential mafia had embezzled billions of rupees by misusing petroleum freight subsidy.
"The inland shipment subsidy is offered to ensure uninterrupted supply and keep prices of the petroleum products stable in the remote areas but a gang is misusing it since a decade," said Dr Murtaza Mughal, President PEW.
Some influential politicians, oil marketing companies (OMCs), officials of petroleum ministry, Orga and carriage contractors are said to be involved, he added.
He said that following deregulation during Musharraf's era, dozens of OMCs cropped up, some only on papers.
These companies with hand in glove with some elements started loading petroleum products from Rawalpindi and Mahmood Kot, Multan for Gilgit-Baltistan (GB) but would unload it locally to charge fare from the government.
Later, the OMCs with the help of an influential group of GB, established dozens of petrol pumps in GB for sole purpose of filing fake delivery orders to get fare without selling a drop of petrol or diesel.
"Presently, many petrol pumps selling 40-50 thousand litres of petroleum products in GB would show sale of 4-5 lakh litre depriving government of billions of rupees," he said.
Dr Murtaza Mughal said that a proper system to check sale of OMCs, audit of filling stations and physical verification was not yet put in place transforming GB into a goldmine for oil mafia.
He said that presently an oil tanker charge Rs750,00 fare for Gilgit while the cost escalates to Rs100 thousand for Skardu and Hunza.
"It takes five days for a carriage vehicle to deliver petroleum products in Gilgit and come back but the tankers of the mafia are paid fare for 4-5 trips in a calendar week which is amazing," he noted.
PSO has established a depot in GB but other OMCs were never asked to conduct business through that facility. Rather direct sales were preferred due to obvious reasons, he said.
He also criticized PSO to remain mum over the issue despite knowing all the details.
Dr Mughal demanded of the Chief Justice of Pakistan and other officials to take notice of the plunder, stop malpractice and ensure recovery of looted wealth.