INSIGHT AND FORESIGHT

January 19, 2015

The Real story of Petrol Crises in Pakistan

Filed under: Uncategorized — sharafs @ 4:55 pm
Tags: , ,

Pakistan has over 3.4 million vehicles running on CNG. With CNG stations closed for over a month these users mostly commercial shifted to petrol. Even if each user used 10 Liters of petrol per day, the extra demand rose to at least 34 million liters a day. With PARCO closed for 4-5 days for maintenance, local refineries could not make up the increased demand. Even now these refineries are full blast.

Oil distribution companies and PSO were reluctant to import petrol because with the expected cut in rices, they were reluctant to forego a part of their exorbitant profit. So they decided to wait out the crises. But unlike past years, the CNG stations were completely closed and the crises will persist.

PSO and distribution companies make huge profits whenever the oil prices increase and there is no accountability. Within their pricing and distribution mechanisms, there are profits and kickbacks that go unchecked. It is Pakistan’s biggest mega corruption cartel/cabal.

Pakistan State Oil is Pakistan’s largest energy company currently engaged in the import, marketing and distribution of products including fuels, petrochemicals and lubricants. It controls 78.2 % of the entire Pakistani black oil market and 54.3% share in the white oil market. Hence when PSO moves, the entire country shudders. 

PSO has grown since 1974 through merger of Pakistan National Oil, Dawood Petroleum Limited and Premiere Oil Company to its present shape in 2004. As a government controlled autonomous organization, its role and efficiency is crucial to Pakistan’s energy sector eclipsing the two arms of the Sui Gas companies and Pakistan Petroleum Limited. Being the sole importer of petro chemicals, fuel and byproducts, its ability to negotiate pricing mechanisms at source and dissipate the same to its clients and consumers is therefore worth a scrutiny. Corruption can only work in concert with local refineries, petro chemical producers and OGRA. It is clear as daylight that the Ex Chairman NAB during his tenure had dared to look into these affairs to which Shaukat Aziz was very sensitive.

There are many mechanisms from imports to distribution including local products that can be brought into question regarding PSO. The entire cabal of cartels will need to be investigated. Outside experts and sources inside NAB believe that a complete investigation into this holiest of holy cow could result in misappropriations and recovery of over 30 Trillion Rupees. It is only then that an approximate slippage of Rs. 3,000 billion as opined by Chairman NAB begins to make sense. Hence the logic of multi dimensional pressures generated against Chairman NAB through diverse sources.

No government and NAB dare touch them.

Depleting strategic stocks is treason.
Hope this is loud and clear.

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1 Comment »

  1. Message received clearly. Succinct!

    Comment by Imran Ahmed — January 19, 2015 @ 5:19 pm


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