Home »Business and Economy » Pakistan » Storage infrastructure: PBIF backs 10 paisa a litre surcharge on sale of fuels

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  • Aug 21st, 2017
  • Comments Off on Storage infrastructure: PBIF backs 10 paisa a litre surcharge on sale of fuels
President of Pakistan Businessmen and Intellectuals Forum (PBIF) Mian Zahid Hussain has supported the proposal of a surcharge of ten paisa per litre on the sale of all transport fuels to enhance the storage infrastructure and stockpiles to at least 45 days of consumption. He said that oil storage capacity of India and China is far better than that of Pakistan. He said reserves of petroleum, oil and lubricant products must be maintained for 45 days but presently they are significantly lower than the required quantities which are a security threat that must be tackled urgently.

Lauding the vision of Prime Minister Shahid Khaqan Abbasi, he said, that vision would ensure rapid development. He cited that Prime Minister Abbasi had served as Federal Minister for Petroleum and Natural Resources for many years with full dedication and has enjoyed a clean reputation. He said that the prime minister was the architect of the LNG policy that reduced the supply-demand gap in the country, and his tenure would help ensure energy security for the country.

"Soon after becoming the prime minister he has focused on reforms in the energy sector and he is considering deregulating some of the transport fuels," he said, adding that the deregulation of profit margins of oil marketing companies and petroleum dealers would be one of the important decisions by the government resulting in various benefits for the public as well as private sector petroleum refiners while it would also show positive results for the economy by attracting investment.

However, PBIF president said that the Oil and Gas Regulatory Authority had reportedly opposed the proposed deregulation of profit margins of oil marketing companies and petroleum dealers, fearing that the move would encourage them to form a cartel and fix retail prices at the expense of consumers which must be considered.

"Pakistan monthly consumes 600,000 tons of high-speed diesels whereas petrol demand stands at 550,000 tons per month which is being increased by 20 percent per annum," he said, adding that presently oil marketing companies charge Rs 2.41 per litre of petrol and diesel while dealers collect Rs 3.16 on petrol and Rs 2.67 on diesel and they were trying to improve their margins.



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