PR to annually transport 2MT POL products

ISLAMABAD: Pakistan Railways and petroleum ministry on Wednesday signed an agreement under which the railways will transport at least two million tonnes of petroleum products a year from the country’s biggest oil marketing company Pakistan State Oil (PSO) to various locations around the country.

Syed Rashid Kamal, general manager Logistics at PSO and Abdul Hameed Razi, additional general manager Traffic at Pakistan Railways signed the fuel transportation agreement.

“PSO shall endeavour to transport at least 2.0 million tonnes of fuel per year through railways which is subject to demand placed by the ministry of water and power,” a statement said. “This agreement has tenure of 5 years, which can be extended after getting consent from both parties.”

Currently, PSO is using Pakistan Railways for transportation of 38 percent of its oil to power plants and terminals across the country. Three years ago, the share stood at merely four percent.

“In the past, the percentage of the oil transportation of PSO through railways was very low that has now enhanced by concerted efforts of the Pakistan Railways,” the statement said. “The increase has around 10 times more as compared to the previous transportation of oil through railways and efforts were underway to further enhance it.”

PSO held half of the oil market share as of March, according to Topline Research. Shell, Hascol and Attock Petroleum Limited accounted for the remaining shares. The oil marketing firm sold more than 10 million tonnes of furnace oil, high speed diesel, motor spirit and other petroleum products in the country during the first nine months of the current fiscal year.  

Under the fuel transportation agreement (FTA), oil will be transported from Keamari terminal to Muzzafargarh, Nishatabad, Piran Ghaib and Lalpir, from Pipri Marshalling yard and Bin Qasim port to Muzaffargarh, Nishatabad, Piran Ghaib, Lalpir and Akhundabad, from Mehmood Kot to Chakpirana, Sihala and Tarujabba and from Attock Refinery, Morgah or Rawalpindi to Lalpir.

The FTA has been approved from the legal advisers so that both the departments/institute could work in their legal right.

Both parties have decided to enter into this agreement and set out their respective rights and obligations in relation to the transportation of fuel from Keamari, Marshalling Yard Pipri, Bin Qasim, Mehmood Kot and Attock Refinery Limited.

Under the agreement, PSO will make the imbursement of transportation charges to railways for the movement of fuel.