ISLAMABAD: Pakistani authorities on Thursday sealed seven petrol pumps found guilty of "hoarding" petroleum products in the country's most populous Punjab province and fined their owners for allegedly creating an "artificial petrol shortage", a Pakistani minister confirmed.
The government’s move came after several petrol stations in different cities of Punjab temporarily suspended their services earlier this week, causing problems for consumers who kept moving from one fuel station to another in search of petrol.
Long queues were witnessed outside petrol pumps, leading to speculations the country was undergoing a fuel shortage. However, Pakistan's Minister of State for Petroleum Dr. Musadik Malik dismissed reports of a shortage in the country. He accused "some" oil companies of hoarding petroleum products.
Oil dealers blamed companies for supplying them with less stock, who in turn said there was a genuine shortage in the country due to import restrictions and Pakistan's economic crisis.
“Inspections were carried out at different places in two districts of Punjab today and [hefty] fines were imposed on those who had hoarded the stock of petrol in one district of the province,” the minister told reporters. “Meanwhile, six petrol pumps have been sealed there for [the same reason].”
Dr. Malik added that in another district of the province, one petrol pump was sealed for hoarding, and a fine worth over Rs500,000 was slapped on its owner.
“We have spoken to the head of the Petroleum Dealers Association and assured them that no one will be harassed unnecessarily during inspections,” the state minister said, adding that the association has decided to cooperate with the government.
Dr. Malik stressed that the federal administration will continue to take strict action against hoarders if they failed to release adequate stocks to petrol pumps by tonight.
Dr. Malik had categorically said on Wednesday that the country’s ongoing negotiations with the International Monetary Fund (IMF) had nothing to do with the prices of petroleum products in the country.
He maintained that the two sides were not discussing raising prices of petroleum products, adding that any fluctuation in fuel prices was due to volatility in the international market.
Pakistan is facing a major dollar liquidity crunch which has led the government to unofficially suspend the import of various items, including essential goods, to save its foreign currency reserves that have decline to less than $3 billion.
