Fuel retailers are seeking government intervention as artificial diesel shortages hit the pumps

A petrol pump in the federal capital is seen in this undated photo. — Online/File
  • Dealers say some companies supply small amounts of diesel.
  • Fuel pumps run dry and unable to serve customers: dealers
  • Dealers also complain about cancellation of orders after they are placed.

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

In a letter to the chairman of the Oil and Gas Regulatory Authority (Ogra), the Petrol Pump Dealers Association said that oil marketing companies (OMCs) have restricted diesel supplies for the past week.

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

Dealers say they place orders that are later canceled and fuel trucks sit waiting for hours without being loaded. They believe the shortage is not natural but artificial, created by companies ahead of a possible rise in fuel prices expected later this month.

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

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

It may be noted that a fuel price update is expected at midnight today.

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

Petrol price was hiked by Rs 2.43 per liter to Rs 265.45 per liter till tonight, while high speed diesel (HSD) price was also increased by Rs 3.02 to Rs 278.44 per litre, the Finance Department said in a release based on the authority’s latest review.

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