Iranian POL causing huge revenue loss

DAWN.COM

KARACHI: The sale of smuggled Iranian diesel and petrol is causing huge revenue losses to the national exchequer of about Rs40-50 million per day in Sindh alone besides compromising safety of human life and vehicles.

Talking to Dawn on Monday, Pakistan Petroleum Dealers Association (PPDA) chairman Abdul Sami Khan said that there are more than 500 dabba stations with dispensers and roadside outlets in Karachi and its outskirts now as compared to 150-200 a few years back.

Sale of smuggled Iranian petrol and diesel is going on for a few years now and the number of such illegal outlets has increased sharply in many cities of Sindh and Balochistan provinces including Karachi and Quetta.

A difference of Rs7 to Rs8 per litre in Iranian petrol and diesel in Karachi as compared to products of oil marketing companies (OMC) is luring public and private vehicle owners.

A petroleum dealer in Quetta said that Iranian petrol was available at Rs8 per litre less than OMC product while Iranian diesel was sold at Rs12 per litre low price than the price of OMC diesel in various parts of Balochistan.

PPDA has strived hard in the last eight to 10 years against the entry of smuggled products. “At least 20 FIRs in various Police Stations of Karachi against dabba stations and roadside facilities also failed to bear any results,” Khan said.

Scores of meetings with Customs officials, FBR, Ministry of Petroleum and explosive department also proved fruitless, he alleged.

“Sometimes the authorities become active but after a few days, the sale of smuggled products restarts with support of the police,” he said.

Dealers opined that adding strict checks at the Iran-Pakistan border as well as intra-provincial borders, effective police crackdown and full cooperation of Commissioner and DCO of various cities can control this menace.

Senior Vice President Balochistan Petroleum Dealers Association (BPDA) Sarwar Shah said that the Balochistan government has started crackdown against transporters involved in transporting oil products in passenger buses.

He further said that steps have been taken to stop the sale of smuggled products after a tragic incident in which two passenger coaches and a pick-up rammed into an overturned truck at RCD Highway near Hub that claimed lives of 36 people.

At least one coach and the truck were allegedly carrying oil smuggled from Iran.

Shah claimed that an area called Dasht has at least 100 such dabba stations and pumps with dispensers.

“I hope that clean-up of illegal sale spots of petroleum products will have a number of benefits,” he said.

An OMC official said that thriving sale of smuggled oil products was decreasing the market share besides affecting vehicle performance.