The Oil Tanker Contractors Association Karachi (OTCA) has lodged a strong protest with the government against what it described as a “unilateral and arbitrary” increase in the pipeline quota for motor gasoline, it was reported on Tuesday.
In a letter addressed to the Secretary Petroleum at the Ministry of Petroleum, the association said the Petroleum Division had directed the Oil and Gas Regulatory Authority (OGRA) through a letter dated March 25 to enhance the pipeline quota of MOGAS to as much as 70 percent. The association said it was not consulted before the decision was taken.
We are compelled to place on record our strongest protest against the unilateral and arbitrary enhancement of pipeline quota of MOGAS,” the letter stated, adding that the decision was made without any engagement with the transporters who are the primary stakeholders and directly affected by the change.
The association said the last consultative engagement between the two sides had fixed the pipeline quota at 45 percent and the road share at 55 percent.
It argued that any subsequent increase without consultation was unlawful, arbitrary, and in blatant violation of the principles of natural justice.
The OTCA also pointed to the financial burden the decision had imposed on its members. It said the existing freight calculation mechanism was based on an average monthly mileage of approximately 5,800 kilometres per vehicle.
Following the increase in pipeline quota, however, operational mileage had been slashed to approximately 2,000 kilometres per month per vehicle. The association said no corresponding revision in freight rates had been made to account for this drastic reduction, which it described as economic exploitation and financial strangulation of the transport sector.
The association further noted that its members had made substantial capital investments in strict compliance with OGRA-mandated standards.
Shoaib Ashraf said that fares for transporting the petroleum products have not increased. He said that we are unable to run our business on old quota.
Shoaib Ashraf said that “we are in touch with the government through other channels. He said that the country’s petrol and diesel supply chain cannot be fulfilled through a pipeline.
