LAHORE: Owners of hundreds of fuel stations in the remote districts, especially Rahim Yar Khan, allegedly continue fleecing consumers by charging Re1 to Rs2 higher than the prices of the petroleum, oil and lubricants (POL) fixed by the Oil and Gas Regulatory Authority (Ogra).

The situation appears to be out of control of the regulator, Ogra, as no one in the local or divisional administration is ready to take responsibility for ensuring sale of petrol and diesel at the official prices.

“What to do when the local administration appears to be taking side of the filling stations’ owners who have succeeded in making a cartel ‘to do whatever they want’. The administration has really left the consumers at the mercy of these looters”, deplores Shahzad, a resident of Rahim Yar Khan.

As many as 300 petrol stations are being run in this district by the members of the District Petroleum Dealers Association. Though the people have registered complaints with the quarters concerned but the local administration, headed by the deputy commissioner, took no action. However, in the last December, the filling station owners, ahead of an Ogra team’s arrival, reduced the petrol and diesel prices and started charging the consumers as per the notified prices.

“These people (petroleum dealers) are very sharp as they knew what would happen if the team booked any of them for overcharging the customers. They slashed the prices and the Ogra team couldn’t found anything wrong and returned,” said an official source in the Rahim Yar Khan. He said the local administration too looked to be supportive of the dealers.

“How the officials concerned would take action when they know well that the district administration’s top bosses enjoy favour of a powerful federal minister of the ruling PTI. The minister allegedly patronises a local MPA who has his own filling pumps in the district,” he explained.

The source said that sometimes ago, a couple of filling station owners started selling petrol and diesel as per notified prices, ignoring instructions of their association. But, they again resumed overcharging after the association reprimanded them and allegedly threatened them with ouster from the association.

The filling stations in the district get petrol and diesel supplies mostly from the Pannu Aqal, about 160km away from the district. Sometimes, in case of any issue, they also get supplies from Shikarpur depot, 200km far from the district. Ogra, according to the source, notifies prices separately for each district, keeping in view the actual petrol price, carriage and other administrative and operational expenses.

“That is why rates in Rahim Yar Khan are different (already bit higher) from other cities. But the dealers don’t bother about these rates and charge according to the rates calculated on their own,” he added.

According to Zafar Mazari, District Petroleum Dealers Association chief, it was impossible to sell petrol and diesel at the notified prices.

“On various occasions, the petroleum dealers observed strikes in south Punjab on this issue in the past, demanding the government deregulate the POL prices in the region. Ogra gives us only Rs80 paisa per litre (carriage charges) while the actual cost is Rs2.87,” he explained.

He claimed that none of the filling stations in the district were involved in selling substandard petrol and diesel and the government agencies, dealing with weight and measures, never received any complaint from the public in this regard.

“The price we are charging is absolutely justified. And if someone forces us to follow the notified prices, it means we are being forced to compromise fuel quality and weight and measures,” he maintained.

Talking to Dawn, the Ogra spokesman confirmed that the authority had received some complaints related to overcharging by the filling stations.

“The prices we fix are quite reasonable as they include all expenses etc,” he said and added that the filing stations situated nearby or far from the depot had different rates notified by Ogra. He said Ogra, under the law, could not take action directly against the pump owners as it was supposed to penalise the respective oil marketing companies (like PSO etc).

“So it is the duty of respective district administration to ensure implementation of the notified rates,” he added.

When contacted, Bahawalpur Commissioner Nayyer Iqbal said he would order the district administration of Rahim Yar Khan to look into the issue.

“Previously, we had received a complaint in this regard and we took action against the filling station owners,” he added.

Published in Dawn, February 12th, 2019