ISLAMABAD - The committee probing the oil crisis has recom­mended the government to take a punitive action against nine oil marketing companies (OMCs) for violating their licence terms & conditions and if the oil supply doesn’t improve within a month then their licences should be cancelled .

In its interim report on black marketing, and hoarding by OMCs, the committee said that dur­ing the oil crisis the sales of SPL, TPPL, APL, AOPSL, BYCO, GO, Hascol, Puma, and BE dropped substantially and recommended that a necessary punitive action should be taken against them.

The federal government had constituted a com­mittee, under DG Oil on June 8 to monitor and verify stock availability, and identification of black marketing, and hoarding by OMCs.

As per OCAC record, PSO has significantly in­creased its market share at the time of fuel crisis. Their Keamari Terminals are operating round the clock for last two week.

GO Petrol stocks were 54,000 MT at Keamari and PQ, during April 2020, GO market share re­mained 9.30 to 14.0% whereas decreased to 11.2% during 1/6/2020 to 10/6/2020 (time of fuel crises). Owing to huge stocks and prevail­ing situation, GO must have pushed the product in the market, which they failed. Whereas HSD share dropped from 10.7% (May 2020) to 8.3% (1-10/6/2020).

HPL Petrol stocks were 43,000 MT at Keamari & PO, during April 2020, their market share has been significantly decreased from 10 3% to 7.6% during fuel crises period. HPL had sufficient stocks available with them and they could have pushed the product in the market to ensure con­tinuity of supply of POL products to end custom­ers and to avert dry out at their stations, which they have failed as they have been found guilty of product hoarding, I-e. which had encouraged black marketing of petroleum products in the country. Moreover, HSD share also dropped from 8 6% (May 2020) to 5.7% during the crisis period which seems seems a deliberate attempt to cre­ate product shortage.

PUMA imported 3000 MT on 27th May, must have catered their marketing demand on priority by providing petrol to their retail outlets in order to have availability of petrol to general public rath­er keeping it in tanks for other transactions. Very meager dispatches of only 280 MT of petrol were recorded (from May 27, 2020 to June 8, 2020).

Other OMCs, whose market share dropped compared to previous months include SPL 10.2 percent to 6.1 percent (From 1st to 10th June), TPPL from 13.8 percent in May to 10.2 percent (From 1st to 10th June), APL 9 percent in May to 6.7 percent (From 1st to 10th June), Byco from 3.6 percent in May to 2.2 percent (From 1st to 10th June), BE from 2.3 percent in May to 0.2 per­cent (From 1st to 10th June), AOSPL from 0.5 per­cent in May to 0.1 percent(From 1st to 10th June).

The committee said it strongly recommends to take strict measures against the OMCs who are in­volved in meagre or nil sales as per license term should issued show cause notice for not perform­ing upto the required standard. In case, in one month of time no significant improvement is wit­nessed their marketing license should be cancelled.

It also recommended that HDIP and explosive department should be empowered to take strict actions against these private operators.