Speaking at a press conference at the Lahore Press Club (LPC) on Friday, he said that President Musharraf had increased the margin of dealers in 2001 and set 4 per cent per litre, which was later reduced by 79 paisas per litre in 2007. Now the profit margin of the dealers is only 2.5 per cent that should be 5 per cent for smooth functioning of their business.
Abdul Sami claimed that the operational cost of petrol pumps had increased sharply due to escalating inflation and rise in tariff rates of electricity. He said dealers’ margin could be increased by reducing Oil Marketing Companies’ (OMCs) margin.
Talking about licence fee, he mentioned that the OMCs were making undue profits grabbing licence fees exorbitantly. “OMCs 3.5 per cent per litre profit margin from the government is sufficient enough, therefore they should not charge separate licence fee from the dealers,” he said adding that petroleum dealers have to pay all the local taxes and levies of government.
According to him, the lease agreement executed between the dealers and OMCs contained unlawful terms and conditions, especially lease agreements did not contain mandatory increase in recent clause and that the lease agreement between OMCs and dealers was one-sided. He said that OMCs had not vacated the sites of dealers and demanded the government to ask OMCs to provide statutory increase in rents as per applicable law and reduce the lease period and vacate the sites on expiry of the lease.
He also demanded the OMCs to install flow meters on the tank lorries or at petrol pumps sites to stop the short supplies from OMCs at dealers’ retail outlet. Talking about the petrol smuggling, he requested the Federal Board of Revenue (FBR), to curb the petrol smuggling from Iran and Afghanistan. He said that presently tankers of oil were being smuggled from Iran to Pakistan while Pakistani petrol was being smuggled to Afghanistan causing huge loss to national exchequer. On the other hand the consumers have also been suffering by using sub standard smuggled petroleum products.
Talking about the current energy crisis, Abdul Sami said that it was the result of incompetent energy advisors of the president Musharraf. He said that during the last eight year energy policy was not evolved for Pakistan, resultantly now the country had been facing the worst ever energy crisis. He feared that the IPI gas Pipelines project would not be matured so Pakistan should also work on other countries for import of gas.