Fuel traders seek government intervention as man-made diesel shortage hits pumps

• Traders say some companies are delivering small quantities of diesel.
• Fuel pumps run dry and cannot serve customers: dealers
• Traders also complain about orders being canceled after placement.

Fuel marketers are warning that an industrial shortage of high-speed diesel is affecting petrol pumps across the country, calling on the government to act before conditions worsen, The News reported on Saturday.

In a letter to the chairman of the Petroleum and Natural Gas Regulatory Authority (Ogra), the Petrol Pump Dealers Association said that oil marketing companies (OMCs) have cut diesel supplies last week.

According to the dealers, some companies deliver very small quantities, while others do not deliver any fuel at all. Because of this, many pumps are dry and unable to serve customers.

Traders say they place orders that are later canceled and fuel trucks are left waiting for hours without being loaded. They believe the shortage is not natural but artificial, created by companies in anticipation of a possible increase in fuel prices expected later this month.

The union said the supply cuts are so severe that stations “can hardly meet the needs of the public”. They asked Ogra to direct the OMCs to supply diesel based on the regular sales of each pump so that the stations can function normally again.

The letter, sent on November 14 by the association’s vice-president, was also shared with senior officials, including the petroleum minister, petroleum secretary, director-general of petroleum and secretary of the Petroleum Companies Advisory Council.

It is noted that an update on fuel prices is expected today at midnight.

The government has hiked fuel prices for the coming fortnight, effective November 1, following recommendations from the Petroleum and Natural Gas Regulatory Authority (OGRA) and relevant ministries.

Petrol price increased by Rs 2.43 per liter to be set at Rs 265.45 per liter till tonight, while high speed diesel (HSD) price also increased by Rs 3.02 to Rs 278.44 per litre, the Finance Department said in a notification based on the authority’s latest assessment.