ISLAMABAD - The Petroleum Division has rejected a proposal of Special Investment Facilitation Council (SIFC) regarding doorstep delivery of fuel/gas through mobile units, arguing that the scheme may lead to opening of new dimensions of tax evasion, proliferation of smuggled products, supply of substandard fuel along-with risking general public safety.
In its response to the proposal of SIFC for the permission/NOC for doorstep delivery of fuel/gas through mobile units, Petroleum Division has opposed the proposal, official source told The Nation. Following the SIFC’s proposal regarding home delivery of fuel/gas, Petroleum Division has considered the subject proposal in consultation with relevant stakeholders i.e, Oil and Gas Regulatory Authority (OGRA), Department of Explosives (DoE), Pakistan Petroleum Dealers Association (PPDA), Oil Companies Advisory Council (OCAC) and Oil Marketing Association of Pakistan (OMAP), said a memorandum issued by Petroleum Division. Several consultation sessions were held with stakeholders for consensus building and to explore possible implications of proposal on oil supply chain/market, said the memorandum. The subject proposal revolves around the delivery of fuel products i.e. petrol and diesel, through mobile dispensers, which is not allowed as per existing rules/laws i.e. Petroleum Act 1934 and Petroleum Rules 1937, OGRA Ordinance 2002 and rules made there-under i.e. Pakistan Oil (Refining, Blending, Transportation, Marketing and Storage) Rules-2016. 3. The primary concern raised by all the stakeholders, focused on the potential undermining of the safety protocols.
According to the Petroleum Division, petrol and diesel are categorized as dangerous/hazardous POL products and possess significant safety risks associated with the transportation, storage and particularly dispensing of the products at public places. Secondly, the subject scheme may compete with the sales and heavy investments of retail stations, affecting their business operations.
Moreover, the government is taking every possible step to curb cross border sales and menace of smuggling, which has amassed to approximately 25-30% of total HSD legal sales during last two years, thus severely compromising national oil supply chain and pressurizing local refinery production/operations. Recently, government has started crackdown against illegal petrol stations, which are reportedly used for sale of illegal products. Moreover, digitalization of retail stations has also been tasked to OGRA. There is very high probability that implementation of subject scheme may lead to opening of new dimensions of tax evasion, proliferation of smuggled products, supply of substandard fuel along-with risking general public safety. Keeping in view the above concerns, Petroleum Division does not support the proposal, it said.