Fuel dealers call for government intervention as artificial diesel shortage hits pumps

A petrol pump in the federal capital seen in this undated image. — Online/File
  • Dealers say some companies are delivering small quantities of diesel.
  • Fuel pumps run dry and cannot serve customers: dealers
  • Resellers also complain about orders being canceled after they are placed.

Fuel traders are warning that a shortage of high-speed diesel is affecting petrol pumps across the country, calling on the government to act before conditions deteriorate. News reported Saturday.

In a letter to the Chairman of the Oil and Gas Regulatory Authority (Ogra), the Petrol Pump Dealers Association said oil marketing companies (OMCs) have been restricting diesel supplies since last week.

According to dealers, some companies deliver very small quantities of fuel, while others do not deliver fuel at all. For this reason, many pumps run dry and are unable to service customers.

Dealers say they place orders that are then canceled and tankers wait for hours without being loaded. They believe the shortage is not natural but artificial, created by companies in anticipation of a possible increase in fuel prices expected later this month.

The association said the supply cuts are so severe that stations are “barely able to meet the needs of the public”. They asked Ogra to direct the OMCs to supply diesel based on the regular sales of each pump so that the stations can operate normally again.

The letter, sent on November 14 by the association’s vice president, was also shared with senior officials, including the oil minister, petroleum secretary, petroleum director general and secretary of the Oil Companies Advisory Council.

Note that an update on the fuel price is expected today at midnight.

The government has increased fuel prices for the outgoing fortnight, starting November 1, following recommendations from the Oil and Gas Regulatory Authority (OGRA) and relevant ministries.

The price of petrol has been increased by Rs 2.43 per liter and fixed at Rs 265.45 per liter till this evening, while the price of high speed diesel (HSD) has also been increased by Rs 3.02 to Rs 278.44 per litre, the Finance Division said in a notification based on the latest review of the authority.

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