RECORDER REPORT

ISLAMABAD - The All Pakistan Oil Tankers Contractors Association (APOTCA) has announced a countrywide strike for an indefinite period, which may result into petrol shortage across the country.

The APOTCA argued that they have multiple demands, which help to maintain the smooth supply of the petroleum products across the country. They say the strike would continue until the government accedes to their demands. The association has parked the oil tankers and suspended the supply of oil.

Oil marketing companies have introduced a computerised system instead of the old ‘queue system,’ according to the APOTCA representative, Israr Shinwari told Business Recorder.

The contractors are facing multiple problems as the new queue system is technical and they are not used to.

The APOTCA representative maintained that the turnover tax has been increased to 3.5 percent from 2.5 percent, which has made it difficult for them to do business. Ghiyas Paracha, who is associated with the petroleum, gas and CNG industry, told Business Recorder that the petrol stations kept petroleum products stock for one to two days.

“The size of strike is yet to be known as most of petroleum industry is not supporting the strike,” he added.

The All Pakistan Oil Tankers Owners Association distanced itself from the strike.

The Petroleum Division completed dualisation of the White Oil Pipeline (WOP), from Karachi to Sheikhupura, for supply of petrol and diesel to oil marketing companies (OMCs) and reducing reliance on transportation through tankers.

The pipeline was previously used to move diesel from Karachi to Sheikhupura would be transporting both diesel and petrol in batches after the dual line was made operational.

The WOP would be expanded to Peshawar, for which a contract had already been awarded to the Frontier Works Organization, which had completed its necessary work.

The association is also demanding 50 percent quota in the WOP, meaning the OMCs should dispatch 50 percent supplies through roads and rest of the 50 percent through the pipeline.

The OMCs were dispatching some 60 percent diesel supplies through the pipeline. The rest of supplies were being supplied through tankers.