LAHORE: There will be no shortage of petroleum products in the country again as the government has introduced a “bonded bulk storage policy (BBSP)” to deal with the hoarding menace, says Minister of State for Petroleum Musadik Malik.

“The world’s biggest traders will now come here because of this policy and set up bonded storage facilities and it will address the problem of petroleum products shortage once for all. The step will also help end the monopoly of local storage houses and ensure uninterrupted supply of petroleum products,” Mr Malik told a presser on Wednesday.

The minister said BBSP would address another issue — opening of Letter of Credit (LC) for acquiring petroleum products.

“The international LC confirmation bar will be over by this step. Transac­tions by international traders may also be done in local currency thus reducing burden on foreign exchange,” he added.

The minister revealed that bidding process for drilling of 16 to 24 wells in the sea had also been initiated. He said the government was making all out efforts to stabilise economy and provide relief to the masses.

In response to a question about import of petrol from Russia, he said, “The second shipment of Russian oil has also reached Pakistan”. He chided the Pakistan Tehreek-i-Insaf (PTI) for doing politics on the Russian oil.

Earlier, Finance Minister Ishaq Dar said in a tweet: “ECC approved Bonded Bulk Storage Policy 2023 for petroleum products. Another Govt’s commitment was fulfilled with the people of Pakistan that was made through Budget FY24 speech of 9June23 in the National Assembly of Pakistan.”

Mr Malik said the government was taking appropriate and comprehensive measures to maintain or gradually lower prices of energy, including petroleum, gas and electricity, adds APP.

He expressed the hope that foreign companies, which stored petrol and diesel in bonded warehouses, would definitely get themselves registered in Pakistan and open business accounts in local commercial banks. Consequently, he explained, it would resolve the issue of LC’s confirmation as these companies would make business transactions in dollar or in rupee directly through banks and in a way, it would also release pressure on the country’s foreign exchange reserves and create a little bit space for the government in making payments. He further said that this initiative would also do away with LC charges, which so far were being passed on to the end consumer.

The minister asserted that it would be a great relief for the small filling stations which faced even more problems during shortage of oil as now they would be able to continue their business after buying oil from the bonded warehouses.

Dr Malik said that on behalf of the prime minister “I am giving this good news to people as this is Eid festivity so we should set aside political talks for a while. Today, I will not speak about whatever the PTI is doing or had been doing to bring the country on the verge of collapse. It’s Eid gala, so it is responsibility of the government to give hope to people”.

He, however, pointed out that all the criticism by PTI regarding Russian oil agreement and its shipment died down as the second oil shipment from Russia has reached Pakistan.

He said the coalition government had also made a deal with Azerbaijan, on its own terms and conditions, for inexpensive gas. Under this deal, he added, Azerbaijan would offer a gas tanker every month and it would be up to Pakistan whether to purchase it or not.

“We will purchase this gas if it will be on favourable price. This deal will also help end gas shortage in the country during winter,” he stated.

Besides, he said, as per the government commitment that renewable energy will be promoted, the PM had launched four solar energy projects with an accumulative capacity of 10,000 megawatts. The premier issued directives for working out a comprehensive plan to divert the petroleum companies to renewable energy, green hydrogen and green ammonia, he added.

Published in Dawn, June 29th, 2023