KARACHI: The oil supply crisis extending from Karachi all the way across Pakistan turned severe on Monday when transporters handling the edible commodity were joined by their colleagues supplying fuel products after government intervention failed to convince them to call off their strike.
The supply of edible oil was first suspended on February 17 when oil tanker operators announced a strike in protest against the Pakistan Vanaspati Manufacturers Association's (PVMA) contract with the National Logistics Cell that deprived them of the supply business.The suspension not only increased the price of consumer goods up to Rs30 per kilo on Monday, but with the decision by oil tankers supplying fuel products 'to reinforce the point of view of their business colleagues', the adverse effects seem set to multiply.
A meeting of stakeholders and senior police officers called by Sindh home minister Manzoor Hussain Wassan failed to resolve the issue. Although the statement issued by the Sindh home ministry after the meeting quoted the minister's assurance to 'resolve the crisis through discussion,' people privy to the details said it ended without achieving any breakthrough.
“He (Mr Wassan) urged both parties to settle their issues peacefully, adding that legal action would be taken against those found breaking the law,” said the statement. “Sindh home minister presided over the meeting to discuss and resolve the dispute between Oil Tankers Association and National Logistics Cell (NLC). He also asked senior officers to extend their help in peacefully settling of the issue.”
From the statement, it did not appear that the resolution of the weeklong dispute was anywhere in sight, particularly given that oil tanker operators after the meeting vowed to continue their protest until they were allowed 100 per cent business of edible oil supply.
“In the meeting we were offered a 30 per cent share of the total edible oil supply business,” said Bakhtawar Khan of the All Pakistan Oil Tankers Owners Association (APOTOA). “We categorically turned down that offer. We have invested two million rupees on each tanker to make them suitable for edible oil supply. We want 100 per cent of the business back.”
He said that along with 5,500 oil tankers supplying edible product, nearly 25,000 oil tankers that supply fuel to different parts of the country had also brought their business to a standstill to show their solidarity with the association. The situation has sent ripples of concern through related businesses.
“Currently there is no report of any business closure due to lack of supply,” said Abdul Sami Khan, chairman Pakistan Petroleum Dealers Association. “But it's definitely a source of concern for thousands of fuel station operators and we are receiving calls from all across the country. If the oil tankers do not resume business by Tuesday morning or evening, I fear fuel stations will start drying up.”
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