Panic buying of petrol ahead of further price slash

Islamabad
Motorists and motorcyclists on Friday poured into local filling stations to fuel up.
This panic buying of petrol was triggered by the fears of filling stations closing business on Saturday ahead of further reduction in fuel prices.
If media reports are anything to go by, then petrol price will go down by around Rs10 per litre, high octane’s by Rs14 per litre and high speed diesel’s by over Rs8 per litre from February 1.
Petroleum prices in the country have seen around 35% downward slide over the last four months due to the steep decline in the international oil prices.
Illegal though, the closure of filling stations on December 31 and even on January 1 has been happening for at least three months due to the slash in oil prices, which take effect the moment the clock strikes 12 midnight on the last day of the month.
On the record, owners cite unavailability of petrol as a reason for the closure of filling stations.
They, however, say in secret that how they could sell at lower rate the oil, which was purchased at higher price.
They say they’ve to sell petroleum products at old rates until the available stocks end to avoid losses.
Motorists don’t buy the argument and say filling stations enforce new petroleum prices instantly if the regulator, Ogra, increases them but they refuse to do so when the prices are slashed.
An official of the city administration maintains filling stations can’t suspend petroleum sales on their own when they’ve petrol in stock.
According to him, the administration along with the police cracks down on petrol pumps closing business on the false claim of the end of stock or overcharging visitors. “Such pumps are liable to heavy penalty and even closure for a specified period,” he says.