Government Introduces Bonded Bulk Storage Policy to Tackle Petrol Hoarding
State Minister for Petroleum, Musadik Malik, announced on Wednesday that the federal government has implemented a bonded bulk storage policy as a solution to combat illegal petrol hoarding and ensure a steady supply of petroleum products in Pakistan. The new policy aims to address the issue of hoarders stockpiling fuel whenever prices are expected to rise.
Ending Illegal Hoarding: A Game-Changing Solution
Minister Musadik Malik emphasized the significance of the bonded storage policy during a press conference in Lahore. He stated that the policy would guarantee a smooth supply of petroleum products and put an end to the illegal practice of hoarding. With the implementation of this policy, major traders will no longer be able to hoard oil unlawfully within the country.
Approval of “Bonded Bulk Storage Policy 2023”
Finance Minister Ishaq Dar revealed that the Economic Coordination Committee (ECC) of the cabinet has approved the “Bonded Bulk Storage Policy 2023” for petroleum products. This move fulfills a commitment made by the federal government in the budget speech for the fiscal year 2023-24 on June 9 in the National Assembly.
Understanding the Bonded Storage Policy
According to a senior official from the Petroleum Division, the policy allows foreign suppliers to procure crude oil and petroleum products from the international market and store them in bonded bulk storages located in Pakistani ports. To formally import these products, the country’s customs department will de-bond the stored items.
Benefits of the Policy
This policy will facilitate the reduction of letter of credits (LCs) and freight charges, ensuring a smooth and uninterrupted oil supply chain in the country. In addition, it will encourage foreign suppliers to establish bonded bulk storages within Pakistani ports, similar to the development of the Port of Fujairah in the UAE. The port’s growth was initiated by allowing foreign oil suppliers to store their supplies in bonded storages.
Key Points:
- State Minister for Petroleum, Musadik Malik, announces the introduction of a bonded bulk storage policy to address petrol hoarding.
- The policy aims to prevent illegal hoarding by major traders and ensure a smooth supply of petroleum products.
- The Economic Coordination Committee approves the “Bonded Bulk Storage Policy 2023” for petroleum products, fulfilling a government commitment.
Published in PakWeb, June 28, 2023.
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