ISLAMABAD - The government Wednesday agreed to enhance the freight rates of oil tankers for the hard areas of Azad Jammu & Kashmir, Gilgit Baltistan and Chitral by 30 percent.

Since the government has agreed for the upward revision of the oil tankers’ freight rates for the hard areas, therefore All Pakistan PSO Carriage Contractor Association (APPCCA) has decided to end the week-long strike immediately, General Secretary All Pakistan PSO Carriage Contractor Association (APPCCA), Nauman Ali Butt said while talking to media.

The consensus was reached here in a meeting of Chairperson OGRA Uzma Adil with the representatives of All Pakistan PSO Carriage Contractor Association (APPCCA). It was decided to review the cost of elements, other than HSD after every two years. It was also agreed that during this period APPCCA and oil tankers owners will ensure no strike of tankers lorries for any further revision.

APPCCA will propose the detention/idling charges for loading and unloading delays for the consideration of the Authority for fixing the same for the oil tankers in consultation with the oil industry.

It is pertinent to mention here that, on 18 December, oil tankers stopped supply for hilly areas of AJK, GB and Chitral, after the government delayed the revision of freight rates for these areas. In October last, the government had committed that it will revise the freight rates of oil tankers for AJK, GB and Chitral within one month.

In the first phase, the government had promised to allow an increase in fares for oil transportation between the cities and hilly areas, while in the second phase, it had promised to allow an increase in the freight charges for GB, AJK, Chitral and other hard areas. On October 25, at a meeting between officials of the Petroleum Division, Ogra, APOTA and OTCA, the regulatory body upward revised the fares for oil transportation and allowed an increase of 19.7 percent to 63.93 percent in fares of different slabs of oil transportation.

However, Nauman Ali Butt said that the 30 percent increase will be applicable to the oil tankers providing fuel to hard areas. He said that the proposal regarding the increase in rate will be forwarded to the petroleum division for approval. The new freight rates will be applicable from January 1st, 2018, he added.