Falling crude prices: Edible oil producers call for cut in oil tanker fares

Say 10% reduction should be implemented from February

KARACHI: The Pakistan Vanaspati Manufacturers Association (PVMA) has demanded a reduction in fares of oil tankers proportionate to the fall in petroleum prices.

In a statement, PVMA Chairman Atif Ikram said the oil tankers association has slashed transport fares by less than 1% since the fall in petroleum prices, though the fares should have been cut by at least 10%.

He claimed that they have paid an extra amount of Rs25 million since the petroleum prices started to go down, therefore, they are unable to pass on the benefit of the falling fuel prices to consumers.

The PVMA has demanded that the oil tankers association cut fares by 10% from February 2015. A four-member committee has been formed to hold talks with the owners of oil tankers.

Chairman Atif Ikram chaired a general body meeting of the association which reviewed the supply situation of cooking oil and ghee from Karachi to other parts of the country.

The general body recommended that similar to the inter-city bus fares, oil tanker fares should also be regulated by the government. They also called for a substantial reduction in freight charges.

Ikram said that after a reduction in transport costs, a substantial cut in cooking oil and ghee prices may be considered.

Published in The Express Tribune, February 1^st, 2015.

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