Minister of State for Petroleum Musadik Malik has said that the federal government has introduced bonded bulk storage policy to prevent illegal stockpiling and ensure smooth supply of petroleum products in the country.
Addressing a press conference in Lahore on Wednesday, the Minister of State said that whenever the price of petroleum in the country increases, hoarders used to store fuel at illegal storage points.
He added, “Today I am presenting a solution to end the practice of hoarding.
He said that the bonded storage policy will ensure smooth supply of petroleum products and end the practice of illegal storage.
“Now the world’s biggest traders will not be able to stockpile oil in the country,” he said.
He clarified that under the policy, foreign companies doing legal oil business from around the world can build bonded warehouses to store oil in different major cities and this will not only bring foreign exchange reserves to Pakistan but also increase the supply of petrol. All availability will also be ensured. And diesel in the country.
He added that it would also break the monopoly of a few oil marketing companies, which used to create artificial scarcity of oil in the country under various pretexts, and also discourage illegal stockpiling of oil to earn more profits. used to do
The minister said that the government is taking appropriate and comprehensive measures to maintain or gradually reduce the prices of energy including petroleum, gas and electricity.
Malik added that foreign companies that store petroleum and diesel in bonded warehouses will definitely be registered here in Pakistan and will have to open their business accounts with local commercial banks.
Consequently, this will solve the issue of verification of LCs (Letters of Credit) as these companies will transact business in dollars or rupees directly through banks and in a way this will also put pressure on the country’s foreign exchange reserves. will reduce and this will also reduce the pressure on the country’s foreign exchange reserves. He said that there is little scope for the government in various payments.
He added that the move would also eliminate LC charges, which were being passed on to the end user till now.
The Minister of State asserted that this will be a great relief and convenience to the small filling stations who face more problems during oil shortage and now continue their business after buying oil from bonded warehouses. will be able to
Finance Minister Ishaq Dar said on Wednesday that his statement came at a time when the Economic Coordination Committee (ECC) of the Cabinet approved the “Bonded Bulk Storage Policy 2023” for petroleum products.
ECC approved “Bonded Bulk Storage Policy 2023” for petroleum products.
— Ishaq Dar (@MIshaqDar50) June 28, 2023
Another Govt’s commitment fulfilled with people of Pakistan that was made through Budget FY24 speech of 9June23 in National Assembly of Pakistan.
State Minister for Petroleum will share detail through presser.
On Twitter, the finance minister said that the federal government has fulfilled another promise to the people of Pakistan which it made in the budget speech for the financial year 2023-24 in the National Assembly on June 9.
What is a bonded storage policy?
Under the policy, foreign suppliers will be allowed to purchase crude and POL products from the international market and store them in bonded bulk storages in Pakistan’s ports.
A senior Petroleum Division official explained to JEE News that if Pakistan needs to buy crude or refined oil products from foreign suppliers, the country’s customs department will debond the stored products. In this way, oil products will be officially imported to Pakistan.
However, he said the policy would allow foreign suppliers to export bonded products. If foreign suppliers use the country’s stock, they will pay for it. However, products stored in bonded bulk storage shall not be treated as imported products until the products are debonded by the Customs Department.
This policy will help reduce LCs and freight charges to reasonable levels and maintain the oil supply chain in the country at all times as the supply chain has been disrupted in the past. The policy will also help foreign suppliers to build bonded bulk storage in Pakistan’s ports. The port of Fujairah was initially developed by allowing foreign oil suppliers to store their oil supplies in bonded storage, relevant officials said. Then foreign fuel suppliers started developing bonded storage at Fujairah port and thus the said port was developed.
