Petroleum Ministry forms committee to address oil tanker industry concerns

ISLAMABAD: Federal Minister for Petroleum Ali Pervaiz Malik has constituted a high-level committee to address the longstanding concerns of the Oil Tanker Contractors Association (OTCA), directing it to submit concrete recommendations within one week as the government moves to resolve operational issues affecting Pakistan's oil transportation sector.

The decision was taken during a meeting between the Petroleum Minister and an OTCA delegation led by its President, Abidullah Afridi. The meeting concluded with both sides agreeing to pursue a consultative process to resolve the challenges confronting the oil tanker industry while ensuring uninterrupted fuel supplies across the country.

According to the Petroleum Division, the committee will be headed by the Special Secretary Petroleum and will include the Director General (Oil), representatives of the Oil and Gas Regulatory Authority (OGRA), the Oil Tanker Contractors Association (OTCA), and the Secretary General of the Oil Companies Advisory Council (OCAC).

During the meeting, the OTCA presented a series of demands, including a reduction in the quota allocated to the White Oil Pipeline, the introduction of a transparent mechanism for awarding freight contracts by Oil Marketing Companies (OMCs), linking the freight formula with the Consumer Price Index (CPI), and the immediate discontinuation of commercial loading.

Responding to the concerns, the Petroleum Minister directed OGRA to work closely with all stakeholders to find practical solutions to the genuine issues raised by oil tanker contractors.

He also instructed Oil Marketing Companies to submit their written policies governing the award of freight contracts so that any discriminatory practices, if identified, could be reviewed and addressed in a transparent manner.

In addition, the Minister directed OGRA to strengthen the tracking mechanism for oil tankers and ensure that dealers' vehicles are not used in primary transportation operations, a move aimed at improving regulatory compliance and operational transparency within the petroleum supply chain.

Ali Pervaiz Malik reiterated that ensuring uninterrupted fuel supplies and facilitating consumers remain the government's foremost priorities. He stressed that all stakeholders must work collectively in the national interest, particularly during challenging circumstances, and assured the delegation that all legitimate concerns would receive due consideration through mutual consultation.

The OTCA delegation welcomed the Minister's positive approach and expressed confidence that the newly constituted committee would help resolve the industry's outstanding issues through dialogue, cooperation, and timely recommendations.