Assalam-o-Alaikum-Warahmat-ULLAH ALL,
DAWN News: Petrol pumps make profits by delaying sales
Wednesday, 03 Feb, 2010
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Many pump owners suspended the sale of petrol and diesel in many areas after the print and electronic media in their reports hinted at the possible price hike on Jan 31. Oil marketing companies and petroleum dealers also try to build up stocks before price hikes. - Online photo
KARACHI: Petroleum dealers made windfall profits after the announcement of increase of Rs6.10 and Rs3.33 per litre in petrol and diesel prices on Jan 31. The oil marketing companies (OMCs) also bagged inventory gains.
Retail outlets have an underground storage tank capacity of 15,000 to 50,000 litres of petrol and diesel each depending on the locality and sales. There are more than 5,000 pumps in the country.
For example, on the day of price hike, if a pump owner had storage of 10,000 litres each of two products then it would have definitely made Rs60,000 and Rs30,000 extra on each petrol and diesel sales.
If the pump had 30,000 litres each of petrol and diesel in underground tanks then it would have reaped Rs360,000 and Rs180,000 on sale of two products. One can imagine the huge sale volume of more than 5,000 pumps, which had definitely maintained stocks in their tanks.
Many pumps usually maintain two to three days stocks, while some lift the stocks from OMCs on daily basis depending on their sales.
As the print and electronic media in their reports had hinted at possible price hike on Jan 31, many pump owners suspended the sale of two main products in many areas. Even many pumps resumed the sale very late on Monday morning.
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(1) How long will this go on unchecked ?
(2) When will the common man, the consumer be given relief ?
