Ogra orders Shell to pay Rs254m for tanker blast

ISLAMABAD: Holding Shell Pakistan Limited (SPL) responsible for Ahmedpur Sharqia incident, the Oil and Gas Regulatory Authority (Ogra) slapped Rs10 million penalty on it and also directed the petroleum marketing company to pay a million rupees each to the families of deceased and half-a-million rupees to injured persons.

The regulator ordered the oil marketing company (OMC) to deposit this penalty i.e. Rs254 million within three working days after receiving the order. It further said the SPL shall comply with the decision failing which the authority would be constrained to initiate proceedings against the company to impose further penalty or any other strict action under the law/rules inter alia including suspension of marketing activity. 

It is worth mentioning that after the incident that took place on June 25 that took lives of around 200 people and around 100 others suffered severe burn injuries, the regulator deputed couple of third party inspectors (TPIs) to investigate the incident and they came with a report stating that although the oil tanker had been outsourced, but still the responsibility of maintaining standards lies with Shell since it was the licensee of Ogra.

In the report, the Ogra's TPIs stated that the tanker did not meet technical standards required to carry 50,000 litres of petrol and it did not meet Ogra’s regulations and the Department of Explosives and was also carrying a fake fitness certificate.

The report also said that lack of awareness among the public, local government and Motorways Police delayed response to cordon off the site of the incident to ward off this unfortunate incident. The report recommended greater vigilance regarding safety standards for oil marketing companies (OMCs), also asking them for a "timeline action plan for conversion of tank lorries of their contractor/haulier to the applicable safety laws and regulations". It recommended the Oil Companies Advisory Committee to ensure an aggressive campaign to make the public aware of hazards, and the local governments and departments to revisit their plans for patrolling and quick response.

This accident occurred when a tanker carrying 50,000 litres of fuel overturned after trying to make a sharp turn while travelling from Karachi to Vehari on the main highway and hundreds of residents of a nearby village gathered to collect the leaking fuel.

According the finding of the Third Party Inspector the tank lorry TLJ-352 was hired by the SPL from its haulier, Marwat Enterprises. The said tank lorry has been found to be non-compliant to the Pakistan Petroleum Rules 1937. 

Similarly it was also found that the tank lorry had 4 Axle; therefore, tank lorry was not compliant with the NHSO-2000. Similarly SPL has provided a certificate of fitness by the motor vehicle examiner issued under Quetta (Annexure-VIII). However, the same is fake as confirmed by the Chief Minister Investigation Team (CMIT), Punjab.

SPL has failed to provide the pre-load check list of their company. Instead, they have submitted their haulier’s i.e. Marwat Enterprises check list, the report said. If the same was in place or exercised/monitored in actual, the said lorry could have been denied for loading the product by the SPL, the report added.

In view of the foregoing, OGRA is of the considered opinion that SPL has failed to fulfil its legal responsibility under the Ogra Ordinance 2002 and the Pakistan Oil (Refining, Blending, Transportation, Storage and Marketing) Rules, 2016 and other applicable laws/rules in field for transporting the petroleum products through tank lorries.

APP adds: A spokesperson of Shell Pakistan Limited (SPL), an oil marketing company, meanwhile, said the company was reviewing the Ogra's report on the oil tanker tragedy occurred in Ahmedpur Sharqia on June 25. "Shell Pakistan is presently reviewing Ogra's report in detail," the spokesperson said in a statement.

"It would be unhelpful to speculate on factors that may have contributed to the incident whilst other investigations are still ongoing, but we respect the role of the regulator and will consider the report as we cooperate during investigations by authorities as we conduct our own investigation."