FPCCI official stresses enhancement of oil storage capacity

Says it is a national security threat and should be addressed immediately

ISLAMABAD: Low oil storage capacity in the country is a national security threat and the government should take immediate steps to ensure strategic reserves in Pakistan, an official said Thursday.

The current state of oil storage capacity is highly unsatisfactory as petrol can be stored for requirements on nineteen days only but the whole stock has never exceeded the want of fifteen days, said FPCCI Regional Committee on Industries Chairman Atif Ikram Sheikh.

He said that government provided a lot of incentives to petroleum companies but storage capacity could not be enhanced, while the regulator failed to play the supervisory role.

Sheikh said that according to rules and regulations all oil companies are bound to ensure storage of 20 days but it is violated due to inefficiency of the regulatory body.

“The oil marketing companies are more interested in opening new filling stations and less concerned about enhancing their oil storage capacity,” he said, adding that some companies that are interested in boosting their reserves are confronted with red tape.

“Many oil marketing companies prefer to buy fuel from other companies and supply it to their dealers but this practice is overlooked by the concerned institutions,” he added.

The chairman noted that mismanagement resulted in the worst oil crisis in January 2015 while frequent threat by different bodies of oil tankers has become a menace for the smooth functioning of the economy, therefore urgent steps must be taken.

Published in The Express Tribune, April 14^th, 2017.

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