Pakistan’s new bonded bulk storage policy to stop petroleum hoarding

LAHORE, Pakistan – State Minister for Petroleum Musadik Malik announced that the federal government had implemented a bonded bulk storage policy to combat illegal hoarding and ensure a steady supply of petroleum products nationwide.

During a press conference in Lahore on Wednesday, the state minister addressed the issue of hoarders who would accumulate fuel at unauthorized storage sites whenever petroleum prices were expected to rise in the country. He emphasized the need for a solution to eradicate this practice.

The implementation of the bonded storage policy aims to guarantee a consistent supply of petroleum products and put an end to illegal hoarding. By allowing foreign companies engaged in the legal oil business from around the world to establish bonded warehouses for oil storage in major cities, the policy not only brings foreign exchange reserves to Pakistan but also ensures the availability of petrol and diesel within the country.

Additionally, the policy intends to break the monopoly held by a few oil marketing companies that previously created artificial oil shortages for their benefit. It also discourages illegal hoarding of oil to maximize profits.

To comply with the policy, foreign companies storing petroleum and diesel in bonded warehouses must register in Pakistan and open business accounts in local commercial banks.

The minister further emphasized that the government is implementing comprehensive measures to maintain or gradually reduce the prices of energy resources, including petroleum, gas, and electricity.