Petrol Crisis: Which Entities Have Been Termed Responsible?

The crude oil is known as ‘black gold’ throughout the world. Its lobbies are so strong and powerful that they influence the formation of governments, the enactment of legislation, and even the preparation of budgets along with the creation of an artificial petrol crisis.

These lobbies are not only influential at the international level but their manipulation, stock-keeping, hoarding, and other illegal activities are also common in Pakistan.

PM Imran Khan formed a special inquiry commission in this regard and raised questions on the performance of Special Assistant Nadeem Babar and Secretary Petroleum.

The special inquiry commission has blamed OGRA, petroleum division, and oil companies for the petrol crisis in Pakistan. The commission declared OGRA as a white elephant and recommended its dissolution through an Act of Parliament.

In the inquiry report, the petroleum division is declared incompetent and corrupt. The commission has also recommended action against Petroleum Secretary Asad Ahyauddin and Director General (DG) Oil over the petrol crisis.

The report of the inquiry commission received by News360 states that the companies hoarded oil and reduced the supply till the petrol prices increased.

According to the report, the ban on oil imports in March this year started the petrol crisis.

The performance of senior officials, including the petroleum secretary, has been extremely poor. The petroleum division banned the import of oil while the oil companies were instructed not to take oil from local refineries. OGRA took action against the imminent crisis.

According to the report, oil marketing companies made huge profits and OGRA remained silent on the issue.

According to the report of the commission, a levy of Rs 30 and a sales tax of Rs 10.53 per liter was imposed on petrol at Rs 23.99 per liter. Thus, petrol was sold to the public for Rs74 per liter after the inclusion of all taxes.

Around 90% of the country’s oil marketing companies did not maintain stocks for at least 20 days. The citizens of Pakistan have not been able to avail the cheapest petrol and diesel at present.

According to the report, oil imports and stocks were misrepresented and old stocks were concealed at the lowest rates.

The stock was hoarded and later sold at a higher price as the rates went up. Some nine oil marketing companies pocketed at least Rs 5.5 billion which the people were entitled to benefit from. Oil marketing companies created an artificial shortage of petrol.

In the Inquiry report Dr. Shafi Afridi, a veterinary physician by training, has also been revealed to have appointed as DG Oil in the petroleum division. Dr Afridi had no experience working in the oil sector hence questions were raised why the irregular appointment was made against him.

Shafi Afridi’s inexperience led to a lack of communication between the Ministry of Petroleum and its subsidiaries. The profiteers took full advantage of as there was no information exchange system between the concerned agencies.

Shafi Afridi also made efforts for the errant extension of Research Officer Imran Abro.

Despite the government’s ban on oil imports, some companies imported and stockpiled oil until the prices of petroleum products went up.

The companies hoarding deprived the people of relief.

According to the document, the criminal negligence of not storing oil for 20 days cannot be ignored.

Further, the inquiry commission has recommended fixing the prices of petroleum products on a monthly basis instead of 15 days and setting up a monitoring cell in the Petroleum Division.

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According to the report, the commission has declared OGRA played the role of a silent spectator in the petrol crisis.

According to the report, oil prices fell in the global market while the oil crisis erupted in Pakistan. OGRA remained silent on the unfairness which the consumers suffered from.